Ichimoku cloud indicator analysis of USDX for February 6, 2018

The Dollar index is trying to break above the 4-hour cloud. Trend is neutral as price has entered the 4-hour cloud. Medium-term trend remains bearish though. A bounce in the Dollar index is long overdue and we most probably have started a counter trend bounce.

In the 4-hour chart the Dollar index has support at 89.15 and resistance still at 89.60-89.80. Price has started making higher highs and higher lows, but bulls need to break above 89.60-89.80 resistance in order for a larger bounce to be confirmed under way. A rejection at current levels and a break below 89.15 will most certainly push price towards 88-87.50.

On a daily basis the Dollar index closed above the tenkan-sen (Red line indicator). This is a bullish sign. Target is at the kijun-sen at 90.70 at least. A break above 90.70 will open the way for a push higher towards 92.80.The material has been provided by InstaForex Company - www.instaforex.com