The Dollar index has broken short-term resistance at 80.40 and is moving higher towards our first target of 80.70. EURUSD is the major component of the Dollar index has failed to break resistance and was pushed lower after ECB Draghi comments. Now currently trading above critical support of 1.37, if it breaks lower then we should also expect the Dollar index to continue higher towards major resistance at 81-81.30.
The short-term trend has changed from neutral to bullish once again. The Dollar index yesterday was holding above support and above the Ichimoku cloud. We now find short-term support at 80.30-15. Short-term resistance is now found at 80.70.
The daily chart has broken the downward sloping trend line and is now trying to also break above the Ichimoku cloud. On a daily basis, if the price closes above 80.55, this will be very good for bulls as this will confirm that the trend is up and bulls are in control. Next big resistance is 81-81.40. We remain positive but as long as the index trades above 80 and we also look at the EURUSD pair in case it reverses upwards and breaks above 1.3820, this will be very bad for Dollar bulls.
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