FX.co ★ Ichimoku indicator analysis of USDX for May 17, 2017

The Dollar index remains in a bearish trend breaking to new lows as each level of support we mentioned failed to hold. Price is now heading towards our second target of 97.50-97.

A few days back I mentioned that the USDX should bounce from 99 otherwise we will see 98.50 being tested and most probably broken. The bearish scenario came through and support at 98.50 failed to hold. Price is now making new lows. Trend is bearish. Bulls did not manage to reverse the trend and break resistance.

Red line - resistance

Green line - long-term trend line support

As mentioned earlier this week the weekly candle could manage to get back above the long-term green trend line support and got rejected. A move towards the weekly Kumo at 97 was expected. This is now what we get. Price is now testing the upper cloud boundary at 97.50-97. This is strong weekly support.