The Dollar index has given a buy signal from Friday. Today's gap up has brought it to new highs closer to our bullish flag target. The trend remains up but bulls should be very cautious. Price has held support levels on Friday and bounced breaking above the trend line resistance that gave us the buy signal at 82.20-82.25. Now, at 82.55 after making a high at 82.64, the pull back is a quite normal reaction to profit taking.
The Dollar index remains above the Ichimoku cloud. The gap up may be an exhaustion gap as we are at the final stages of the upward move from 79.75. Support is critical at 82.15. Breaking below that level will confirm that the up trend is complete and over.
In the daily chart, price has touched the upper channel boundaries. This is a typical chartacteristic at the end of big moves. So bulls should be very cautious and raise their stops as we might see a reversal from the current levels. Profit taking is preferred but not going short as this would be against the trend.
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