The Dollar index gave a buy signal yesterday when it broke above the sideways triangle pattern we noted in our previous analysis. Our short-term target of 84.75 has been achieved and price got rejected at the resistance level.
The Dollar index made a high near 84.85 and is pulling back now to back test the break out area. Support is found at 84.25-84.30 area. The ichimoku cloud is below price and provides important short-term support. The ichimoku cloud indicators continue to point higher. After the pullback, I expect the Dollar index to continue higher towards 85. Critical support at 83.85 should hold for the bullish scenario to come true.
Red line = resistance
The Dollar index in the daily chart has broken the bullish flag upwards as expected towards our target. The daily chart remains fully bullish. Daily support is found at 84.30 and at 83.15. We remain bullish favoring a move towards 85 as long as price is above 83.85.
