Ichimoku cloud indicator analysis of USDX for December 20, 2017

The Dollar index is testing important short-term cloud support at 93.30. Will it make a triple bottom and bounce? Trend crucial support is at 92.50-93. Breaching that level will be a bearish sign.

analytics5a3a1a4c4b675.png

Red rectangle - resistance

Black rectangle - support

The Dollar index is still trading inside the 4-hour Kumo. Trend is neutral. Price has respected so far the 93.30 support but bulls will need to show more signs of strength in order for the upward trend to resume. Resistance remains at 94-94.20. Shorter-term resistance is at 93.75 at the upper cloud boundary.

analytics5a3a1ac0ede37.png

On a weekly basis the rejection at the kijun-sen (yellow line indicator) is a bearish sign. Breaking below last week's low will be a new bearish sign. Closing this week near the 94 level or higher will be a bullish sign. As long as price is above 92.50 I continue to believe that the most probable scenario will be for the Dollar index to move higher towards 96-97.The material has been provided by InstaForex Company - www.instaforex.com