The Dollar index remains in up trend making higher highs and higher lows. Price is trending up above the Ichimoku cloud and is now testing the important resistance area of 80.60-80.70. A clear break above this area will be a very bullish sign that could sharply push the index towards 81.
Bulls will need to keep an eye on the support levels of 80.40 and 80.30. Breaking these two levels will start a downward move in the index that could push price below 80. If these two levels are broken, then price will also be below the Ichimoku cloud support and it could be heading towards 79.85.
The daily chart remains bullish as there is no sign yet of a reversal. However bulls would also like to see a clear break out above the upward sloping trend line that is working like a magnet. Ichimoku cloud support is far below at 79.80 and that is why bulls should be very cautious as long as there is no clear break out of the resistance at 80.70.
The material has been provided by InstaForex Company - www.instaforex.com
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