The Dollar index has broken out of the consolidation range it has been in for the last month at least. The price is breaking higher. The RSI is also breaking above resistance. This implies that a new leg higher has started. Looking for 97-98 in August.
Green rectangle - consolidation range
Red line - support trend line
The Dollar index is in a bullish trend. The price has broken above the green rectangle consolidation area. The inability of prices to move below 93.80 thus making a shallow pull back to the previous up trend, strengthens the bullish view we have for the Dollar after this break out. We are bullish the Dollar as long as the price is above the red trend line support. This trend line support is at 94.40-94.50. So bulls should keep an eye on that level. The RSI has canceled the bearish divergence signs and telling me that this week will be bullish for the Dollar as long as we hold above 95. A reversal below 95 will be a bearish signal.
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