Ichimoku indicator analysis of USDX for May 24, 2017

The Dollar index is turning higher as we expected. We have been waiting for a strong bounce in the Dollar index targeting the 98.50-99 area. Being bearish the Dollar index the last couple of days was wrong with no good risk reward ratio.

The Dollar index is now testing the 4-hour kijun-sen resistance. Price is expected to move towards the Kumo at 98 at least if not higher towards the 99 level where we also find the 61.8% Fibonacci retracement of the latest decline. Support is at 97. The trend is about to change in the short-term trend to bullish soon.

Red lines - triangle

Black line - long-term support trend line (broken)

Price has reached important weekly support at the Kumo. The price was expected to bounce off this area and this is what we get right now. The Dollar index is at least expected to bounce towards 99-99.50 area if not something bigger. This is not the time to be bearish the Dollar. If one is longer-term bearish should wait for the bounce to sell higher. Weekly resistance is now at 98.50-99 where we find the broken triangle.

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