Ichimoku cloud indicator analysis of USDX for March 5, 2018

The Dollar index is trading above the 4-hour Ichimoku cloud. Price reached the cloud support and bounced. Support is being respected. Short-term trend remains bullish.

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Black rectangle - resistance

The Dollar index is above the Ichimoku cloud in the 4-hour chart but below both the tenkan- and the kijun-sen indicators. Support is at 89.80. Resistance is at 90.30. A 4-hour close above 90.30 will increase the chances of a move above the black rectangular resistance area.

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Blue line - resistance

On a daily basis the Dollar index got rejected last week at the Ichimoku cloud. Price is above the daily kijun-sen support at 89.60. A daily close below it will be a sign of weakness. On the other hand if bulls manage to break above 90.35 on a daily closing basis, trend will change to neutral and the chances for a move towards 91.30 will increase.

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