The Dollar index has given a daily buy signal and is now in bullish trend. The price is supported both in short- and medium term. The US dollar is expected to strengthen even more. I favor long positions as long as we are above 80.
Yesterday, I mentioned that as long as the price is above the Ichimoku cloud, we should prefer long positions. Resistance at 80.25 was broken and our short-term target of 80.40 has been reached. The Dollar index has made a new short-term higher high and confirms that the trend is bullish. The price is above the Ichimoku cloud. Support is found at 80.15 and 80.
In the daily chart, the price has broken above the short-term top at 80.40 and above the daily Ichimoku cloud. These are two bullish signals. The trend is upwards. We should see the Dollar index to rise to 80.70 which is the next resistance. If that resistance is broken too, we should expect the Dollar index to reach 81. Support is at 80 and if broken there will be increased probability of breaking below 79.75. I believe the bearish scenario is the least favorable. I prefer to remain bullish.
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