The US dollar index remains in a strong bullish upward trend in all time frames. The latest buy signal was given with the breakout of the triangle pattern at 95. We are currently making new 11-year highs above 96 and we have also broken the 50% retracement of the decline from 2001.
Orange area = support
The US dollar index continues to make higher highs and higher lows. The trend remains fully bullish. The price is above the Ichimoku cloud and the tenkan-sen and kijun-sen indicators. The price made a sharp pullback towards the tenkan-sen at 95.85 yesterday and reversed back upwards after the speech by Mario Draghi. Let's not forget that the major component of the index is the EUR/USD pair. Support is at 96-96.20 for the short term.
The monthly chart is also fully bullish. As long as the price is above 94, the trend will remain bullish. The price has also broken the 50% retracement of the decline to 2008 from 2001. We are now heading towards the next big resistance at the 61.8% retracement or the price level of 100-101.
The material has been provided by InstaForex Company - www.instaforex.com
