The Dollar index opens with a gap up getting even closer to our longer-term target of 91. The longer-term view remains fully bullish especially now when the dollar has cleared off the 38% retracement of the decline from 2000.
Purple line = support
Green rectangle = support zone
The Dollar index has broken above the recent sideways consolidation with a gap up today reaching even closer to my 91 target. The trend remains bullish. Price is above the support trendline and above the Ichimoku cloud. As long as these criteria are met, the trend will remain bullish. Today, I expect the Dollar index to pull back towards the green support zone.
Support is found at 90. Resistance is at 90.75. I believe the index is pulling back to close the gap and then resume the uptrend. In the weekly chart above, we see that the index has cleared the 38% retracement resistance. The next target is at the 50% retracement. The parabolic rise is seen to continue. My preferred strategy is to raise stops and protect long positions and not bet against this strong uptrend as it can continue for a long time as it did in 2008.
