The Dollar index remains inside the boundaries of the price range between 80.60 and 80.45. Short-term trend remains neutral while intermediate-term trend is bullish as long as price is above 80. The short-term chart as shown below shows that price is above the Ichimoku cloud and that soon we should expect a breakout.
If support is broken at 80.40, we should expect a pullback towards the 80.25 support. If resistance at 80.60-80.70 is broken, then we should expect the Dollar index to reach 81. After making a low at 79.75, price is trending upwards with higher highs and higher lows.
The daily chart remains bullish as price is still trading above the Ichimoku cloud and has potential to reach the previous highs at 81, where strong daily resistance is found. Breaking above that resistance level will push the Dollar index towards our target of 81.75. Important daily support that needs to be held is the 80 price level.
