The Dollar index has pulled back as expected from last week after being unable to break above 86. The resistance at 86 is a strong level and breaking above it will give me a buy signal with 87 as the 1st target. Support is found at 85.20-85.30. My longer-term view remains bullish in the Dollar index as the bullish flag pattern gives me 90 as the 1st target.
Black line = previous resistance
The Dollar index remains above the cloud support and above the black trend line resistance that was broken. Support is found at 85.30. The 38% retracement of the entire rise is at 84 and we could still see a pull back towards that level if selling pressures against the Dollar continue. Breaking above 86 will cancel most probabilities of seeing a pull back below 85.30.
The daily chart continues to be bullish as far as ichimoku cloud indicators are concerned and the bullish flag pattern that I mentioned last week still holds as a pattern and I still have 90 as my next target. Concluding I remain longer-term bullish and I will not expect a push towards 84 if we break above 86.
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