Ichimoku indicator analysis of USDX for September 1, 2017

The Dollar index has broken through short-term support and got rejected off the 4-hour Ichimoku cloud resistance. This bounce could very well be over and we should have confirmation after today's NFP announcement. I believe the downside is not over for the Dollar index.

Price is below the tenkan-sen and the Kumo (cloud) on the 4-hour chart. Support is at 92.50. If broken, the index could be starting the next big leg down towards 90.50. On the other hand a break above 93.20 could signal a bigger bounce towards 94 or higher.

On a daily basis, price remains inside the bearish channel and yesterday's candle got rejected at the kijun-sen and made a reversal candle pattern and closed below the kijun-sen. In order for this reversal candle to have effect, we need to see another red candle today and most preferably a close below the tenkan-sen (red line indicator). If that happens, we should see the Dollar index near 90.50. If we break to new short-term highs, we should see the 94 level being tested.

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