Dollar Index: Broader Bias Remains Higher Despite Corrective Pullback

[Mohammed Isah]

US Dollar Index: The Index continues to hold on to its broader bias despite its corrective pullback. While it holds above the 82.04/81.43 levels, its medium term uptrend remains intact. This leaves the risk of an eventual return to its July’2012 high at 84.10 on the cards where a violation will call for a move further higher towards the 84.55 level. Further out, resistance resides at the 85.00 level, its psycho level followed by the 86.25 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 82.73 level, its July 19’2012 low followed by the 82.04 level. A cut through here will aim at the 81.43 level. A reversal of roles as support is expected to occur here and turn the index higher. However, if this fails to occur, its May 14’2012 high at 80.35 level will be targeted. All in all, the Index continues to retain its medium term upside despite corrective pullback risks.