The Dollar index remains in the upward trend as prices continue to trade within the upward sloping channel. Prices are moving upwards impulsively, and we believe that at least one more new higher high is expected.
The short-term support is found at 80.50 that if broken will most probably push the index towards 80.15. The short-term resistance is found at 80.75-70. If broken, we will then see a move towards 81 to complete the upward move from 79. Prices are trending upwards, and we remain bullish. Prices have most probably reversed in all time frames, and we should respect the 79 low as an important low and the start of a new upward move.
The weekly chart above is showing signs of trend reversal in the longer-term degree. We expect prices at least to move towards the lower boundaries of the big blue upward sloping channel near 82. If this move that started at 79 is of a bigger degree, we cannot rule out the possibility of a new high above 85 in the longer run. For now, we remain bullish as long as prices trade above 80.50.
