The Dollar index has almost reached our target of 80.10. The index made yesterday a low at 80.15 and bounced upwards towards the broken support at 80.40. Now trading above 80.50, the short-term trend has reversed to up and there are increased chances that we will see a test of the 81 price level.
Short-term resistance is found at 80.75 and if broken we could see the index reach 81-81.15. Short-term support is found at 80.35 and then at 80.10. Today we favor bullish positions with 80.40 stop and 80.75-81 target.
On a daily basis, the index is fighting the 2 MA at 80.60-70 and tries to break above them. Currently, the index is below the two MA indicators and this is bearish. However, with a higher low on a daily basis at 80.15 relative to the previous important low at 79.75, this could be forming a higher low and higher highs pattern. Still important resistance level is the 81.50 and only if this level is broken we should expect the index to move near 82.50-83. Breaking below 80.15 will be negative for bulls as then our target will be 79.50-79.
The material has been provided by InstaForex Company - www.instaforex.com
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