The Dollar index continues its upward move above the short term downward sloping channel. It has now entered important resistance area and it is crucial for its longer term trend to see how it reacts at this level. The short term bullish signal has transformed into an intermediate term trend change that could challenge the logner term trend. Prices have formed a reversal pattern at the 79.70-80 area where important support was found.
The triangle has been broken upwards and the slope of our MA has turned positive supporting our bullish view. The upward move has the pattern of an impulsive wave structure and prices are in a bullish trend. Short term resistance is found at 80.75-81 area. We expect this upward move to continue. Our longer term target is 82.50.
The longer term channel has been broken. This is another bullish signal. However prices have reached the red resistance zone. Bulls need to show strength now and make a decisive break above the resistance level.
