FX.co ★ USDX Ichimoku indicator analysis for February 18, 2016

The US dollar index continues to trade inside an upward sloping short-term channel but still below the 38% Fibonacci retracement. If this uptrend continues, I would expect the index to stop near 98-98.50.

Red lines -bullish channel

The US dollar index has found short-term support at 96.20, and resistance is seen at 97.05. A breakout above the resistance will open the way towards 98. A breakout below support will open the way to new lows even towards 92.

The weekly bounce continues as expected. However, the weekly candle has still not reached the tenkan-sen indicator (red line) this is a sign of weakness. A weekly close below the kijun-sen (yellow line indicator) will be a sign of rejection. If the lows of 95.25 are broken, then we should expect heavy selling to push prices towards 93-92.