Ichimoku cloud indicator analysis of USDX for January 2, 2018

The Dollar index did not bounce as we expected off the 93 support area. Price broke below support and is making new lower lows. Trend is bearish in all time frames. Next important support is at the summer low of 91.

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Short-term trend is clearly bearish. Price is below both the tenkan- and kijun-sen (red and yellow line indicators). Support is at 91. Resistance is at 92.35 and 92.75. Cloud resistance is at 93.50. As long as price is below that level, trend will remain bearish targeting below 91. A break above 93.50 will open the way for a move to 97.

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Red line -long-term resistance trend line

On a daily basis trend is again bearish. Price is below the Daily Kumo (cloud) and is making lower lows and lower highs. Daily resistance is at 93.50. So far bears are under control of the trend.

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