Ichimoku indicator analysis of USDX for October 27, 2017

The Dollar index is breaking to new higher highs as it remains in a bullish short-term trend. We might see a pullback but I give little chances that the upward move from 93.50 will end soon.

Red line - resistance

As we said yesterday, a break above recent double top at 94, would be a bullish sign and the index would first move towards 94.50 and next towards 95. The first target has been achieved. We also said yesterday that as long as the price is above 93.50 trend remains bullish in the short-term. Short-term support can also be found now at 94.10-94 area where the previously had our important resistance level.

On a weekly basis, the Dollar index is now testing the important kijun-sen (yellow line indicator) resistance which coincides with the 38% Fibonacci retracement of the last leg down since 102.25. I believe the Dollar index remains in a longer-term bearish trend but has more room to the upside in the short-term.The material has been provided by InstaForex Company - www.instaforex.com