FX.co ★ Wave analysis of USDX for February 8, 2017

The Dollar index is testing channel and cloud resistance. Trend remains bearish for the Dollar index but we are close to getting a confirmed reversal. This week will be crucial to the short-term trend, especially today.

Blue line - resistance

The price is trying to break out and above the Ichimoku cloud while still trading inside the bearish channel. The Dollar index will either get rejected today and reverse or it will make an explosive breakout above channel resistance. Key level is at 100.80. Short-term support is at 100.15.

I am still not sure if wave 4 has been completed. There is a chance that we might see one more new low below 99 before resuming the uptrend. However, a break above last week's high will be an important sign that the wave 4 low is in. Wave 5 target is at 105. An overlap of wave 1 high will cancel my wave count.