Ichimoku indicator analysis of USDX for May 19, 2017

The Dollar index is heavily oversold. Yesterday I expected a bounce off the day lows and we managed to see such a bounce but not as strong as initially expected. This means that the downward pressures remain very strong and in control of the trend. However I believe traders will get better prices for shorting the Dollar index.

The Dollar index is trading well below the 4-hour cloud and just above the 4-hour tenkan-sen. Next short-term resistance is at 98.30, while I can see over the next week the Dollar index to bounce towards the cloud resistance at 99 at least.

The Dollar index is testing important weekly support. The weekly candle is just above the Kumo (cloud) support. I expect at least a bounce from current levels before more downside is possible. The upside potential could push the index even towards 100.50 but still there is no confirmation in the lower time frames of a bullish reversal.The material has been provided by InstaForex Company - www.instaforex.com