Yesterday the Dollar Index managed to test the resistance at 82.10 but did not break it. It pushed prices lower towards 81.80. We remain cautiously bullish as the trend is reversing from 81.40 to 82.50 is our first bullish and trend reversal signal. Important support is the low of 81.40. Resistance is at 82.50 if a break pushes the prices towards 83.45.
The currecnt downward formation looks corrective and that is why we favor bullish positions with 81.40 stop and will add to them in case of a break of the prices above 82.10 and 82.50. We believe that the Dollar Index will make a new upward move soon.
The longer-term view remains bullish as there are signs of a trend reversal from the 76,4% Fibonacci retracement. The decline looks corrective and that is why we expect a bullish reversal. Concluding we remain cautiously bullish above 81.40 and we would add to our long positions if the prices break above 82.10 and 82.50 targeting 83.45.
The material has been provided by InstaForex Company - www.instaforex.com
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