Ichimoku cloud indicator analysis of USDX for January 24, 2018

The Dollar index as expected made a new low. Trend remains bearish. The bullish divergence signs in the 4 hour chart are signaling that bears need to be very cautious and lower their stops to 91. As long as we are below 91 trend is bearish.

Green lines - bullish divergence signs

The Dollar index could reach the downward sloping green trend line at 89.50 this week. Trend is bearish as price is below both the tenkan- and kijun-sen indicators at 90.16 and 90.40 respectively. Cloud resistance is at 91.60-90.60 so as long as we are below it, bears are in control.

On a monthly basis the Dollar index is challenging long-term cloud support and could even reach the 61.8% Fibonacci retracement at 88.50 where we also find the upward sloping black trend line support and the lower cloud boundary. Looking at the bigger picture this is not the time to be bearish the Dollar. The decline from 103 will soon be complete.The material has been provided by InstaForex Company - www.instaforex.com