Ichimoku indicator analysis of USDX for February 25, 2016

The US dollar index is stuck at the 50% retracement of a decline from 99.85. The price remains inside an upward sloping channel confirming that the short-term trend remains bullish. There are indications that a bearish reversal could be seen soon.

Blue lines - bullish channel

The price is above the Ichimoku cloud. It has broken below the tenkan-sen (red line indicator) in the 4-hour chart as shown above. The price is trapped around the 50% retracement. Support is found at 97.20. If it gets broken, we should test the Kumo (cloud) at 96.70. Next resistance is the 61.8% Fibo level.

In the weekly chart, we see the price trying to break above the tenkan-sen (red line indicator). For now, we see a rejection in this area. The weekly kijun-sen (yellow line indicator) is at 97.10, so a weekly close below that level will open the way to a decline towards cloud support at 96. A weekly close above the tenkan-sen will open the way to the area of 98.50-99.The material has been provided by InstaForex Company - www.instaforex.com