Ichimoku indicator analysis of USDX December 14, 2017

The Dollar index has pulled back as expected by our latest analysis back towards 93.30 and cloud support. This is a very important short-term support area. Bears must be careful of a possible bounce higher.

The Dollar index is testing the upper Kumo (cloud) boundary support. Between 93.40-93 we have very important support. If it holds, expect the Dollar index to move higher above 94. The 94 area remains important resistance as we also got rejected yesterday from that level. Important resistance that short-term Dollar bulls need to overcome is at 93.75-93.80.

I have warned Dollar bulls several times in previous posts that the area of 93.90-94.40 is important resistance area and a rejection there is very possible, before the resumption of the upward move that started at the 92.50 low. A break above yesterday's highs will increase dramatically the chances of the index going towards 96-97. A break below 92.50 will increase the chances of a move towards 88-87.

The material has been provided by InstaForex Company - www.instaforex.com