The Dollar index has back tested the broken downward sloping channel. Now it is preparing for another strong upward move that could bring prices to 81. We are bullish biased expecting the upward move to be strong.
Short term resistance is found at 80.75. Short term support is found at 80.30. The index is now trading at 80.50 and we expect in the next few days to see it above 81. The red upward sloping trend line provides support to the upward trend that started at 79.75. We expect prices to continue to make higher highs and higher lows. Stop for bulls is 80.30 for short term traders. Short term target is 81.
Longer term traders should have 79.80 as stop and 82.50 as target. Important resistance from the daily chart as shown above, is found at 80.85-95. The blue downward sloping trend line if broken, would confirm up trend. We are bullish biased and we want resistance at 81 to be broken soon.
