FX.co ★ Ichimoku cloud indicator analysis of USDX for January 26, 2018

The Dollar index has reached our 88.50 target and bounced strongly towards 89.50 yesterday. However, the resistance is very strong there and we have rejection signs. Trend remains bearish as long as price is below yesterday's lows.

The Dollar index remains below the 4 hour Kumo (cloud). Trend is bearish. Price is testing the 4 hour Kijun-sen (yellow line indicator) which is now support. A higher low and a move above yesgterday's high would be a very bullish sign and a reversal confirmation. But first bulls need to break above 89.30 which is the lower boundary of the Kumo (cloud).

Black line -long-term support

On a weekly basis, the Dollar index has reached the 61.8% Fibonacci retracement of the rise from 2013. Trend is clearly bearish. Important support is at 87 where the black upward sloping trend line is found. I expect the Dollar index to reverse towards 92-9, as I believe that the decline from 103 is near its end.