The Dollar Index held its support levels as we expected yesterday and is rising towards our first target at 81.70. We were looking for a low around this area for a long time and it seems that another upward move has started in the Dollar Index. The short-term trend may change to upward one but the intermediate term is still downward.
The short-term resistance is found at 81.70 and then at 81.90 and 82.50 where the intermediate term trend is challenged. Support is found at 81.45 and 81.30. Breaking below 81.45 will push towards 81.30-15. The longer-term stop for bulls should be at 80.86.
It is time for the daily chart to test the blue downward sloping trendline at 81.80-90. Breaking above it will give a bullish momentum to the Index that will help it to challenge the intermediate trend at 82.50. We are cautiously bullish above 80.86. The first warning signal will come if the price breaks below 81.40 and 81.30.
