Will The US Dollar Go Higher?

The US Dollar Index Futures continues to look strong according to Ichimoku Cloud analysis.

Rising inflation and increasing uncertainty in the markets caused investors to fly to safety. Gold, Oil, and the US Dollar all were on the rise. The initial rush to buy has subsided. Yes, the markets climbed but the price respected resistance zones, and the markets backed off. The current retracement in these markets is a good sign that panic buying did not take over.

The US Dollar has seen the weakest pullback. The Ichimoku Cloud indicates there could be more upside potential for price to extend upward to the old highs from March 2020.

US Dollar Index Futures Weekly Ichimoku Cloud Chart

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The US Dollar price is above the weekly Ichimoku Cloud and looks to be trending up strongly. Price, however, has reached its extended target and bounced off an old December 2020, Span B. The top of wave 3 hits at an Ichimoku Cloud 9-period reaction, turning point. Anticipate a price consolidation between the two Span B points of 99.285 and 97.843. As price is quite extended from the Cloud, a retracement will bring the price back to the equilibrium of the cloud.

The bull trend in the US Dollar should continue if price moves above the top of wave 3. Price should then rise up to the 3rd extended target and old March 2020 highs.

US Dollar Index Futures Daily Ichimoku Cloud Chart

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The US Dollar is bullish on the daily Ichimoku Cloud. The momentum is up and the lagging line has no resistance. Upon reaching the top of the target zone on March 7th, the price pulled back but only to the bottom of the target zone. The target zone area reflects the weekly chart’s Span B points. Look for a bull flag to form here as price consolidates and waits to move closer to the daily Ichimoku Cloud.

Once the price breaks above the top of the wave 11 highs, the US Dollar should push upwards to the 101 targets.

US Dollar Index Futures 60-Minute Ichimoku Cloud Chart

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The short-term Ichimoku chart shows the US Dollar in congestion. Prices bounce above and below the cloud indicating the equilibrium in the market. The 60-minute chart has begun trending down.

Before the daily and weekly charts can move higher, the US Dollar has to re-establish a solid uptrend on the hourly chart. Wait for price and the lagging line to break above the Ichimoku Cloud indicating the start of the next move.