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22.02.2016 09:50 AM
Ichimoku indicator analysis of USDX for February 22, 2016

The Dollar index is trading sideways in a upward sloping channel as support was held last week. It seems the bounce that started at 95.25 is not over and we should expect more upside in the index.

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Blue lines - bullish channel

The Dollar index is above to break above the Kumo in the 4-hour chart. Price has held above the kijun and tenkan-sen indicators while is now testing the 38% Fibonacci retracement. The chances of breaking higher towards 97.50 are high as long as price is above 96.50.

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On a weekly basis, price has closed above the Kumo which means that this week we are going to see a test of the kijun- and tenkan-sen indicators. Resistance by those two indicators is at 97.20-97.50 area. Support is at 98.90. Price is above the weekly Kumo but below the tenkan- and kijun-sen. So traders need to be very cautious as price is trapped between important support and resistance levels.
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