The Dollar index remains in uptrend. The price has broken above an important resistance level at 80. A pullback downwards back tested this breakout and now the index is trying to hold this level. There is an increased probability that the upward move from the May lows is over and we could see a deeper pull back towards 79.70, but it is still too early to tell as the major component of the US Dollar index (EURUSD) remains very weak and vulnerable.
Price is above the Ichimoku cloud and above the red downward sloping channel that was broken. There is increased chances that a pull back below 80 could bring the Dollar index back towards 79.70 to touch the Ichimoku cloud support. Trend however remains up and the important low at 78.90 should hold if bulls want to make a longer-term reversal.
The daily chart remains bearish. Although price has broken above the blue downward sloping trend line, it is still below the Ichimoku cloud resistance. It is justified to see a pause in the up trend at current levels since these levels are very strong resistance. This means that it is wise for bulls to take profits and wait for market to give more information and data. Price is more likely to pull back. Entry for long positions is suitable near 79.80-79.70. Stop for longs is 78.90. A break above 80.70 is very bullish sign.
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