Ichimoku indicator analysis of USDX for February 23, 2016

The US dollar index continues to trade inside an upward sloping channel and has now broken out and above the Kumo resistance area. There are increased chances that this upward move continues towards 98.05 where the 61.8% Fibonacci retracement is found.

Blue lines - bullish channel

The US dollar index has reached the 50% Fibonacci retracement and is pulling back. The price is above the Ichimoku cloud and still inside the bullish channel confirming bullish momentum. Support is found at 96.80, so a breakout below it will open the way to the Kumo at 96.30.

The weekly candle has reached the tenkan-sen (red line indicator) and is now testing it. A weekly close above it will open the way for a bigger bounce or even a new trend start with new highs as a target. But as long as we are below the tenkan-sen in the weekly chart, bulls should be very cautious. Weekly support is found at 96. If this level is lost, we should expect 95.20 to be tested.The material has been provided by InstaForex Company - www.instaforex.com