The Dollar index remains in a long-term uptrend and has produced a new high above 93 as expected after breaking above 92.40 as signaled last week. The short-term trend is neutral as prices pull back from recent highs.
The Dollar index is above the Ichimoku cloud support. This is a bullish sign. Price is trading below the tenkan-sen which implies short-term weakness that could push price towards 92.40 or even to 92.10 where the top of the cloud support is found. The long-tailed candle is a bearish sign but overall the chart is bullish and a pullback is considered as another buy opportunity.
On the monthly chart as I show above, the trend remains strongly bullish. The break out above the 38% retracement was critical as I had mentioned in previous posts and the rise could continue towards the 50% retracement near 95.50. This second leg up from 79.75 relative to the first rise from 72.70 to 83.50 in 2011 and 2012 is bigger. It increases the chances of this upward move being an extended rise that could reach our next target of 95.50. Important support of this longer term uptrend is 90.50.
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