In our previous analysis, we mentioned that the Dollar Index was oversold and made a double bottom and that there was increased chances of an upward bounce. We expected the Dollar Index to rise first towards 80,40 and then towards 80,60. The index has managed to hold above its recent lows and it is now trading near our targets at 80,38.
The Dollar Index has managed to move above the black trend line and it is moving towards the first important resistance at 80,40 or the 38% Fibonacci retracement. Short-term support is found at 80,15 and short-term resistance at 80,40.
The daily chart confirmed the short-term trend reversal that we were expecting. It is crucial on a daily level to break above 80,40 level as this could open the way towards the 61,8% Fibonacci retracement at 81. For now we remain bullish the Dollar Index.
