Ichimoku cloud indicator analysis of USDX for March 9, 2018

The Dollar index made a strong bounce yesterday towards cloud resistance. Bears are still in control of the trend and with Non Farm Payrolls today, we expect to see volatility rise in the index.

Price bounced off the 50% Fibonacci retracement and reached Kumo resistance at 90.30. A rejection here is very possible. Next important resistance is at 90.50. A break above it could challenge the recent high at 90.92. Support is at 89.90.

On a daily basis the US dollar index bounced right at the lower boundary of the Ichimoku cloud. The price held above the Kijun-sen which was very important support. It remains to be seen if we get another rejection or a break inside the Kumo. A break inside the Kumo could lead to a bigger bounce for the dollar. A rejection and a break below the Kijun-sen support would be very bearish in the medium-term.The material has been provided by InstaForex Company - www.instaforex.com