The Dollar index remains above short-term support and we identify a bullish setup that could push price towards 85. The trend remains bullish in the longer-term. So, long positions are favored for now as we do not want to go against the trend. The next target is 85.
The Dollar index has made a new higher high on Friday and a pull back is underway. Support by the Ichimoku cloud was held and a bounce followed as we wanted. Support at 84.20 is important for the short-term uptrend. As long as price is above 84.20, we should expect a break out towards 85.
Red line = resistance
In the daily chart above, the Dollar index remains in a fully bullish momentum according to the Ichimoku indicators. The ichimoku cloud remains below price. Tenkan-sen and kijun-sen still have a positive slope and the Chikou Span remains bullish above the current candles rising along.
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