USDX Ichimoku indicator analysis for February 17, 2016
February 17, 2016 9:40 am
The US dollar index continues to move higher inside a short-term upward sloping channel and has reached the 38% retracement resistance of a decline from 99.80. The bounce in the US dollar index is not as strong as I expected. Bulls need to be very cautious.
Red lines – bullish channel
The US dollar index has entered the Ichimoku cloud in the 4-hour chart. The price remains below the 38% retracement but also above both the tenkan- and kijun-sen indicators. As long as the US dollar index is above 96.15, a trend will remain neutral. A breakout above 97.50 will change the trend to bullish.
The weekly candle is testing the weekly kijun-sen resistance. The back test is unfolding as we expected, but bulls need to be very cautious in case we see a rejection. A rejection now will push prices even lower towards 92 where the lower boundary of the Ichimoku cloud is found. Important support and stop for longs is seen at 95.30.
The material has been provided by InstaForex Company – www.instaforex.com
The US dollar index continues to move higher inside a short-term upward sloping channel and has reached the 38% retracement resistance of a decline from 99.80. The bounce in the US dollar index is not as strong as I expected. Bulls need to be very cautious.
Red lines – bullish channel
The US dollar index has entered the Ichimoku cloud in the 4-hour chart. The price remains below the 38% retracement but also above both the tenkan- and kijun-sen indicators. As long as the US dollar index is above 96.15, a trend will remain neutral. A breakout above 97.50 will change the trend to bullish.
The weekly candle is testing the weekly kijun-sen resistance. The back test is unfolding as we expected, but bulls need to be very cautious in case we see a rejection. A rejection now will push prices even lower towards 92 where the lower boundary of the Ichimoku cloud is found. Important support and stop for longs is seen at 95.30.
The material has been provided by InstaForex Company – www.instaforex.com
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