Ichimoku cloud indicator analysis of USDX for February 28, 2018

As we mentioned yesterday the Dollar bounced off the critical support area but price remains below the recent high at 90.60. Only a break above this level will confirm that a bigger bounce is in play for the Dollar index. The chances of this break out have increased dramatically.

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Red line - resistance trend line (broken)

Black rectangle - horizontal resistance

The Dollar index is in a bullish short-term trend as price is trading above the Kumo (cloud) and above both the tenkan- and kijun-sen indicators. Resistance is found at 90.60. Support is at 89.60-89.50.

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Blue line - resistance

On a daily basis the Dollar index is above both the tenkan- and kijun-sen indicators. Price is below the cloud and below the blue trend line resistance. Cloud resistance that bulls must overcome is at 91-91.70. This is strong daily resistance. A break above this area will be an important bullish signal. I'm bullish about the index as long as price is above 89.50.

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