Ichimoku cloud indicator analysis of USDX for April 18, 2018

Although the Dollar index started weak yesterday, price held the important short-term upward sloping trend line support and made a strong bounce. Trend remains bearish as price remains below the 4-hour Ichimoku cloud. There is no indication by the price action that a bigger reversal has started.

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Black line - short-term trend line support

Price is below the Ichimoku cloud. Bulls will need to break above 90-90.30 resistance area. If this happens, then we can talk for a bigger bounce towards 91.70 and higher. Yesterday's lows are also very important price level. Bears need to break them soon and the decline towards 88 will accelerate. Bears are still in control of the trend and they do not want price to break above 90. Bulls need to defend 89.20 and show more signs of strength.

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