The Dollar index despite my belief that the top could be in, shows important signs of strength that we should not ignore. Price has held above the Ichimoku cloud in the 4 hour chart as shown below. Price is now trending upwards and remains inside the upward sloping channel.
The decline from the latest highs consists of 3 waves down. This means that the decline was corrective and the upward move is not over yet. There is an evident chance, we will see a new high towards 81.85 or even 82. Short-term support is found at 81.50 and short-term resistance at 81.65-81.70.
Yesterday, I mentioned in my analysis how important was the upward sloping channel in the daily chart as shown above. Price did not break the support level of 81.35 and has been held inside the upward sloping channel. This was a bullish sign that a new high is possible. No sell signal was given as no support level was broken. The trend remains up in the daily chart and a new upward move started yesterday. We could even reach 82 or higher very soon. Important support level that should hold for this scenario to come true is the price level at 81.40. Holding above 81.40 is crucial for the bullish scenario.
