The Dollar index is making new short-term higher highs above 80.35. Trend remains up and it seems that bulls continue to have the upper hand as sellers are not strong enough to push the index towards 80. As shown in the chart below, the short-term trend is up as price remains above the Ichimoku cloud and the red upward sloping trend line.
As long as price is above the trend line and the Ichimoku cloud trend is bullish. Short-term support is found at 80 and at 79.90. Short-term resistance is found at 80.70. It is very crucial for the Dollar index not to break the 79.90 level. If this level is broken, then I will assume that the entire upward move is a correction and we should expect new lows below 78.90. For now, trend remains up as prce makes higher highs and higher lows.
Even in the daily chart, price has broken and made more than one close above the Ichimoku cloud and it seems that a pull back will be postponed. Important daily resistance is found at 80.60 and if we see a daily close above it, we will get another confirmation that the longer-term trend has reversed to up. As long as price is above 79.90, we remain bullish.
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