Ichimoku cloud indicator analysis of USDX for January 22, 2018

The Dollar index remains in a bearish trend. Price remains below the important short-term cloud resistance at 91 and as long as we are below it, we should expected more downside ahead. The weekly candle however gives some hopes to bulls with a bullish reversal hammer pattern.


Black rectangle - resistance

The Dollar index cannot overcome the resistance at the 91 level. This is the most important short-term level. Only a break above it will push price towards the next important resistance of 93. Support is at 90.40 and next at 90.20.


Blue line - long-term resistance

Weekly trend remains bearish. The Dollar index made a weekly bullish hammer candlestick pattern last week and if bulls manage to break above last week's high, we could see the start of a bigger bounce at least towards the blue trend line resistance at 93. As long as we are below 91, there will be no reversal confirmation.

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