The Dollar index has made a break out above resistance levels yesterday and is very strong moving higher above 85. This break out is very important as many traders have bet against it and not only bulls are buying this but also bears whith their stops getting hit. The 85 price level was a very important long-term resistance.
Red line = resistance
The short-term chart is fully bullish once again as price has broken above the 84.80 resistance and is now making new highs. Price is making higher highs and higher lows. The buy signal was given once we broke above 84.80 and our target is now near 86 for the short term.
Red line = resistance
The daily chart remains fully bullish and specially now that we have broken above the long-term resistance levels we could see this rally continue. It is important for the week to close above 85 and to continue closing higher above 85 and not pulling back below 84.50. We could see a back test of the break out area at 85 but right now anything deeper that 84.50 could signal a false break out. This would be an extremely bearish signal. In conclusion, we remain bullish.
The material has been provided by InstaForex Company - www.instaforex.com
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