Ichimoku cloud indicator analysis of USDX for January 29, 2018

The US dollar index remains in a bearish trend. The dollar index will need to break above last week's high in order to confirm that at least a short-term low is in. The dollar index should break above 90.60 to change short-term trend.

Red lines- bearish channel

The dollar index is trading inside the red bearish channel and below the 4 hour Kumo (cloud). Trend is clearly bearish. Resistance is at 89.60 and if broken, we will then challenge the bearish channel and the Kumo resistance. Only a break above 90.60 will confirm short-term trend reversal.

On a weekly basis, the dollar index is bouncing off the 61.8% Fibonacci retracement of the rise from the 79 level since 2014. Next weekly support is at 87 and is going to be tested if we break below 88.44 (last week's low). My longer-term view is neutral to bullish. Bears must be very cautious and lower their stops. The downside is limited.The material has been provided by InstaForex Company - www.instaforex.com