Ichimoku indicator analysis of USDX for September 18, 2017

The Dollar index as expected completed its bounce at 92.50 area and reversed. Short-term trend remains bearish. I continue to expect the Dollar index to move below 90. The upward bounce was clearly corrective and not a larger trend change.

Black line - short-term support (broken)

The Dollar index got rejected at the 61.8% Fibonacci retracement and has also broken below the black trend line support. Short-term support is now found at 91.65. Breaking below that level will confirm our view that we are heading towards 90 and lower. Short-term resistance is at 92.20 at the upper Kumo (cloud) boundary.

On a daily basis the Dollar index is clearly trapped between the kijun- and tenkan-sen indicators making lower lows and lower highs. Price got rejected at the kijun-sen and now the tenkan-sen is being tested. A break below Friday's lows will open the way for a push towards 90 and lower. I remain short-term bearish as long as we are trading below last week's high.The material has been provided by InstaForex Company - www.instaforex.com