The Dollar index although has given us short term bullish signals, it still remains under the important resistance level of 81. Prices show low volatility as expected during the holiday season. Currently, the price pattern favors bulls, but prices still remain below important resistance levels.
There is potential for prices to move higher as there is a sequence of higher highs and higher lows from 79.75. Short-term trend is up as long as prices trade above the red upward sloping trend line. Short term resistance is found at 80.75-80 and short-term support is found at 80.30-10.
The daily chart still shows that short-term trend is challenging the intermediate bearish trend. Breaking above the blue downward sloping trend line at 80.75-80 will be a bullish signal that could change the intermediate term from bearish to bullish. Concluding, we are feeling bullish as long as prices continue to trade above 79.80-79.90 as this is very important support. Our target is 82.50.
