Ichimoku indicator analysis of USDX for August 23, 2017

The US dollar index broke below the cloud and the channel yesterday but right away we saw a bounce that is back testing the broken support and is trying to mark the breakdown as a false one.

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Red lines - bullish channel (broken)

The dollar index is trying to move back above the 4 hour Kumo and inside the bullish channel. This bounce is corrective and we should expect a rejection soon to turn the price lower. The support is found at 93.30 and resistance lies at 93.70.

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On a daily basis the dollar index is trying to break above the tenkan-sen. We are in the daily resistance area. I expect a rejection here. The dollar index is likely to break towards 91 over the coming weeks.The material has been provided by InstaForex Company - www.instaforex.com