The Dollar index has broken the short-term resistance level and has also broken above the triangle boundaries. Prices have given a short-term bullish signal but we also need to see a continuation in this bullish strength and a break above the resistance area at 81-81.50.
The Dollar index not only has broken out of the triangle, but also made a higher high above the 80.75 previous high as shown in the chart above. The pattern of lower lows and lower highs has now been canceled. Bulls will need to establish an upward trend with higher highs and higher lows in order to confirm bullish trend. Short-term resistance is found at 81. Short-term support is found at 80.40.
As we said in previous posts, prices will need to break above the red resistance are as shown in the daily chart above. It is a good sign for bulls that prices in the daily chart are forming a higher low than the one previously made in October near 79. The downward correction from 81.50 has finished near the 61.8% Fibonacci retracement and prices are ready for a new upward move towards at least the 82.50 level. We remain bullish biased in the longer term as long as prices trade above 79.
The material has been provided by InstaForex Company - www.instaforex.com
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