Ichimoku indicator analysis of USDX for December 6, 2017

The Dollar index is moving higher as expected. Price briefly broke above cloud resistance yesterday but moved back inside the cloud. Today I expect the Dollar index to confirm the short-term bullish trend by breaking above 93.50.

analytics5a27a9fdd9035.png

Black lines - bearish channel (broken)

The Dollar index is inside the 4-hour Kumo (cloud). Trend is neutral but price is about to break above the cloud and change to bullish. Price has made an important reversal from our 92.50 target area. We are Dollar bullish looking for a test of November- October highs.

analytics5a27aa41c8ece.png

On a weekly basis, the Dollar index is bouncing off the 61.8% Fibonacci retracement. Important resistance is found at 93.90 and next at 94.40. Breaking above these two resistance levels will confirm my view for a move towards the weekly Kumo at 96-97 area. Support is at last week's low. Bulls must hold above that level.The material has been provided by InstaForex Company - www.instaforex.com