Ichimoku indicator analysis of USDX for May 23, 2017


The Dollar index remains in a bearish channel. Trend remains bearish. I favor a dollar bounce this week from current levels but we still have no confirmation of a reversal.

Red lines – bearish channel

Short-term resistance by the tenkan- sen is at 97.12 and by the kijun-sen at 97.47. Cloud resistance and target of the bounce expected is at 98.60-99. The RSI is diverging on the 4-hour chart.


Red line – resistance

Green line – long-term trend line support (broken)

The weekly candle is testing the weekly Kumo support at 96.90-97 area. The RSI is oversold on a weekly basis. This is not the time be shorting but to be looking reversal signs. The bounce that will come will give a better opportunity and a better selling price level higher. Traders need to be patient. Aggressive traders will also look to play the bounce once we get the first short-term reversal signals.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Ichimoku indicator analysis of USDX for May 23, 2017

About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Leave a Reply