Ichimoku indicator analysis of USDX for September 14, 2017

The Dollar index is showing signs of strength. We mentioned in previous analysis that Dollar bears should be very cautious because we had warning signs of a possible strong bounce in the index. The index is now challenging resistance that if broken could confirm that we are in a bigger bounce towards 96-97. However my main view remains bearish looking for a move below 90 over the coming weeks.

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In the 4-hour chart the Dollar index is trying to break out of the Ichimoku cloud resistance. Price is now at the 61.8% Fibonacci retracement of the decline from 93.35. This important Fibo resistance is at the same level with the Kumo. Dollar bulls need to be cautious here for a possible rejection. Support and trend change level for the short-term is at 91.70.

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On a daily basis the Dollar index is testing the kijun-sen resistance level at 92.50-92.60. Breaking above this level will push the index towards the lower boundary of the Ichimoku cloud near 93.80-94. As long as the index is above 91.70 the chances of a bigger bounce are higher. However longer-term trend remains bearish and this bounce is considered as a selling opportunity.The material has been provided by InstaForex Company - www.instaforex.com