Ichimoku indicator analysis of USDX for July 3, 2017

The Dollar index remains in a bearish trend. There are signs of a possible upward reversal at least for the short-term, so Dollar bears should be very cautious.

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Blue lines - bearish channel

Red line - resistance

Price is inside a bearish channel. Price is trading below both the tenkan- and kijun-sen indicators. RSI (5) is oversold and turning upwards. This is a bullish short-term sign. This implies that a bounce towards the red line resistance and previous support is highly possible for the start of the week.

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Blue lines - bearish channel

The weekly trend is bearish. The oscillators are diverging and the price is touching the lower channel boundary. A bounce towards the upper channel boundary or at least the lower Kumo boundary is justified. So a bounce towards 98-98.50 is awaited. No reversal confirmation yet. Bears should be cautious.

The material has been provided by InstaForex Company - www.instaforex.com