The Dollar index has pulled back up inside neutral territory. The Dollar index, despite showing many signs of weakness and a potential test of 79, has pulled back upwards inside the Ichimoku cloud. Support at 79.20-.30 was not tested as the price did not break below 79.50.
A break above short-term resistance at 79.85 will be good for bulls. This could be the start of an upward move towards 80.15. For this to happen, the price should not break below 79.50. This level could be used as a stop for long positions. Short positions will be favored if support fails.
The longer-term trend has not changed. The trend remains down. Price continues to trade below the Ichimoku cloud and below the blue downward sloping trend line. The Dollar index is testing now the trend line and the lower boundaries of the Ichimoku cloud. Strong resistance is found above 80 up until 80.60. A trend reversal could be confirmed if 80.60 is broken upwards and we see at least 2-day close above it. Critical long-term support and double bottom at 79.20 are important. Soon I expect the Dollar index to start a new move. Depending on if it breaks 79 or 80.60 we will know the direction.
