Ichimoku cloud indicator analysis of USDX for February 22, 2018

The Dollar index has reversed its short-term trend to bullish. The price is breaking above important resistance levels for the short-term and is challenging medium-term trend change levels. There is many chances the Dollar index decline from 103.60 is over.

analytics5a8e78e20c7a8.png

Red line - long-term resistance

The Dollar index has broken above the Ichimoku cloud in the 4-hour chart and above the long-term trend line resistance. The trend is bullish as the price is making higher highs and higher lows. Support is at 89.60 once again. Resistance is at 90.55.

analytics5a8e7926739d7.png

Black line -long-term support

The Dollar index bounced off the long-term 50% Fibonacci retracement of the rise from 72.75 to 103.60. The price is still inside the monthly Kumo (cloud). I expect a strong bounce towards the upper cloud boundary over the next few weeks. I would not chase short positions in the Dollar index at current levels.

The material has been provided by InstaForex Company - www.instaforex.com