The Dollar Index was influenced positively by the sharp decline in EURUSD and the sharp rise in USDJPY. It has reached our first short-term target at 81.75. The price moves upwards impulsively and we take into consideration the fact that both EURUSD and USDJPY move impulsively in favor of the dollar, then we should expect continuation of the bullish trend in the Dollar Index.
The short-term support is found at 81.65 but the trend we believe has changed to up and will only be in danger if the price breaks below 80.85. The short-term trend is upward. Resistance is found at 81.90-82 and the intemediate-term trend will be challenged at 82.40-50 area. We expect the price to continue higher and break above resistance levels. Even if a pullback towards 81.50-40 occurs, we think it will be a buy opportunity.
In the daily chart as shown above the price are testing the short-term downward sloping blue trend line now. It will be a positive sign for the intermediate-term trend to see a price break above this level. We still believe in the longer-term strength of the Dollar and, therefore, we expect the Dollar Index to challenge the level of 85 in the near future. Taking this into consideration, entering long near 81.50 area with 80 as stop is a good risk-reward opportunity.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar Index was influenced positively by the sharp decline in EURUSD and the sharp rise in USDJPY. It has reached our first short-term target at 81.75. The price moves upwards impulsively and we take into consideration the fact that both EURUSD and USDJPY move impulsively in favor of the dollar, then we should expect continuation of the bullish trend in the Dollar Index.
The short-term support is found at 81.65 but the trend we believe has changed to up and will only be in danger if the price breaks below 80.85. The short-term trend is upward. Resistance is found at 81.90-82 and the intemediate-term trend will be challenged at 82.40-50 area. We expect the price to continue higher and break above resistance levels. Even if a pullback towards 81.50-40 occurs, we think it will be a buy opportunity.
In the daily chart as shown above the price are testing the short-term downward sloping blue trend line now. It will be a positive sign for the intermediate-term trend to see a price break above this level. We still believe in the longer-term strength of the Dollar and, therefore, we expect the Dollar Index to challenge the level of 85 in the near future. Taking this into consideration, entering long near 81.50 area with 80 as stop is a good risk-reward opportunity.
The material has been provided by InstaForex Company – www.instaforex.com
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