Ichimoku indicator analysis of USDX for December 8, 2017

The Dollar index continues higher as expected but we could see a pull back towards 93 today or Monday. Trend remains short-term bullish. We could see a short-term pullback for a higher low before the continuation of the bigger bounce higher towards 96.

Black lines - bullish channel

The Dollar index is testing upper channel boundary resistance. Trend is bullish. We could see a pullback towards cloud support at 93.40-93 but overall I believe we have started our next leg up towards 96. Important support is at 93 by the Ichimoku cloud. Bulls do not want to see this level broken downwards.

The weekly candle remains bullish as price is at its weekly highs. Price has started the reversal from last week off the 61.8% Fibonacci retracement as expected. The Dollar index is approaching important weekly resistance at 93.85-94.40. A break higher will confirm our view for a move towards 96. However I do not believe the move will reach the target straight away.The material has been provided by InstaForex Company - www.instaforex.com