The Dollar index has made a very shallow pullback confirming that buyers are very strong at current levels. With the major component of the Dollar index (EURUSD) being so weak, we saw a pullback of the Dollar index that only touched the Ichimoku cloud support and did not even go to the 38% retracement. This is a bullish sign that implies the absence of sellers.
The Dollar index is making new higher highs as the downward correction has ended and was very shallow. I now expect the Dollar index to continue higher towards 80.70. Support is found at 80 up to 79.60 in case of a pull back down.
The daily chart is getting very bullish as price is breaking above the daily Ichimoku cloud resistance. This could signal a trend reversal on the daily level. Important support is found at 79.60 and should not be broken. Bulls seem to have the upper hand as sellers could not even push the price towards the 38% retracement. The shallow pull back implies that this upward move is a new one and has much more room to go higher.
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