Ichimoku cloud indicator analysis of USDX for December 11, 2017

The Dollar index has hit the first important resistance area and is turning back downwards. From last week when we reached our 92.50 target in the index, we said a strong bounce should follow but bulls will also need to be careful in case we see a rejection at 94-94.15 area.

Black rectangle - support area

The Dollar index has broken below the 4-hour tenkan-sen. This is an initial reversal signal. Support is at 93.55. Next is at 93.40. Resistance remains at 94-94.15. Important short-term support is at 93-92.80. A break below this area will cancel my bullish view for 96-97.

The Dollar index reached our target of 92.50 and bounced as expected. Now price has reached the first important resistance area of 94. This area is crucial if we are to see a bigger bounce towards 96-97. Bulls will need to break above it, otherwise a strong rejection here will open the way for a move below 90. Confirmation for this bearish scenario will come on a break below 92.80-93 support area.The material has been provided by InstaForex Company - www.instaforex.com