The US dollar index picked up some strength on Friday as the price bounced off the lower bullish channel boundaries and support levels. A trend remains bullish. The decline has a corrective overlapping structure, and I expect the bullish trend to resume soon.
The US dollar index is trading above the Ichimoku cloud support and still inside the bullish channel. Support is found in the area of 98.60-98.40, while resistance is found at 99.25. In case of a breakout above 99.25, I would expect the level of 100 to be reached. New highs are also expected.
The weekly chart remains bullish despite the pullback performed last week. The price might be consolidating before the final thrust to new highs near 101-102. The trend remains long-term bullish and there is still no signs of reversal. Bulls should be cautious as we are just below important long-term resistance. Bulls should protect their longs with stops at 98.
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