Ichimoku cloud indicator analysis of USDX for February 7, 2018

The Dollar index is showing short-term reversal signs. Price has broken out and above the 4-hour Kumo (cloud) resistance. Price is now back testing the cloud support (previous resistance) and is expected to move higher towards 91.

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The Dollar index has short-term support at 89.60-89.50 which was previous resistance. This is also where the cloud is now. The kijun-sen support is now at 89.30. Bulls do not want to see a 4 hour close below this level. Resistance is yesterday's high. Break above 90 and we are off to 91.

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On a daily basis the Dollar index is trading above the tenkan-sen. Support is at 89.30 (tenkan-sen) and resistance is at 90.50 (kijun-sen). A daily close above 90.50 could push price towards the Ichimoku cloud at 91.50-92. There are signs of a Dollar bottom, so bears need to be very cautious.The material has been provided by InstaForex Company - www.instaforex.com