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Forex S&P500

$USDX . Weekly kumo resistance

If the recent drop is due to weakness of Euro and the strengthening of USD, then the /DX shows that we have an opportunity to play the reversal.

On the Ichimoku Weekly Chart, /DX (or $USDX) shows that it is inside the Weekly kumo. In other words, the long term bullish trend have not been established yet.

In fact, this /DX rally might fail and it may goes back to bear territories (below the kumo).

The Ichimoku Daily Chart for /DX shows that today it is in a very good narrow trading range. Support at around 77.80 and resistance at around 78.2

One can easily choose a direction and use the other as a stop-loss.

My preference is bearish for /DX. In other words, I see USD weakening against other currencies.

By iam802

Trend trading with Ichimoku