The Dollar index is trading just below 80.70 resistance and I expect it to remain there until we hear what Mario Draghi has to say about ECB monetary policy today. The Dollar index is above the Ichimoku cloud and above the trend line support. The trend remains up as price makes higher highs and higher lows.
Bulls should be very cautious as there is increased danger to break support today and see a trend reversal. Price levels that bulls should look out for are 80.50 and 80.40. Breaking below these levels I should expect the Dollar index to at least re-test 80 if not move lower.
The daily chart shows how price is magnetised by the blue upward sloping trend line. Price is above the Ichimoku cloud support found at 80.05. A new break below the blue trend line support at 80.40 will most certainly push price towards 80. For now we remain long and bullish as long as support levels are held. If we see a clear break above 80.70 we should expect price to reach 81 fast.
