Ichimoku indicator analysis of USDX for August 22, 2017

The US dollar index has broken the channel and the cloud support. This is a bearish sign. Price is now back testing the breakdown level. I expect to see more selling pressures against the dollar over the coming sessions.

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Red lines - bullish channel

The dollar index has not only broken below the 4 hour Kumo but also has moved out of the bullish channel. Short-term trend is changing to bearish again. Price is now back testing the lower end of the channel. Usually price gets rejected and that is what I expect in the short term.

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Red lines - bearish channel

The dollar index daily candle got rejected at the tenkan-sen yesterday and is moving lower. Price as mentioned above has moved below the bullish channel. These signs are bearish and that is why I expect the dollar index to get rejected once again and move to new lows.

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