The Dollar Index has broken short term resistance levels at 81.15 and is trying to make a bullish reversal as the price breaks out of the downward sloping trend channel. The short-term support is found at 81 and at 80.85. The price should stay above these support levels for bulls to have increased chances of reversal. The intermediate-term trend remains downward but as it was mentioned before we believe that a trend reversal is around the corner and bears have more to lose at this price level than bulls. The bullish potential could bring the price to 83-84 again.
Short term resistance is found at 81.60-81.95. The price will need to continue above those levels in order to the intermediate-term trend to be challenged. A trend change will be confirmed to upwards if the price breaks above 82.50.
The daily chart shows an early sign of a potential trend reversal but it is still to early to tell if the price have fallen just below 81. The longer-term support still holds at 80.50 and all we need now it is an upward break above 82.50 for the intermediate-term trend to change to upward. We favor long positions with 81.05 stop and 81.70 as a first target.
The material has been provided by InstaForex Company - www.instaforex.com
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