Ichimoku indicator analysis of USDX for August 28, 2017

The Dollar index made the second rejection as expected and is breaking to new lows. Target remains at 91.60 and trend remains bearish.

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Red lines - bullish channel (broken)

The Dollar index is in a bearish confirmed trend since the channel and the cloud support failed to hold price. We mentioned that and even after the back test of the cloud and the channel we remained bearish. Support is now at 91.80-91.60 where the short-term target is found.

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Short-term resistance is at 92.80. The Dollar index made a new monthly low but both RSI indicators did not. A move above 93.30 will confirm trend reversal and a push towards 94-95 will be expected. Dollar bears need to be very cautious. This divergence is a warning, not a confirmed reversal. The trend remains bearish.The material has been provided by InstaForex Company - www.instaforex.com