US Dollar Index: With continued downside pressure seen, the Index remains vulnerable and looks to return to its key support located at 78.09 level. As long as it continues to hold below the 80.73 level, the above view remains valid with a violation of the 78.09 level turning attention to its Feb 06’2012 low at 78.36 level. A breach of here will turn focus to the 77.97 level and then the 76.71 level. Its daily RSI is bullish and pointing lower supporting this view. On the other hand, a break and hold above the 80.73 level will trigger further bullish offensive towards the 81.78 level, its Jan 2012 high. A breather may occur here but if that level breaks, further upside offensive should build up towards the 83.55 level, its Aug’2011 high and possibly higher towards the 84.55 level. All in all, the Index continues to retain its medium term upside bias though vulnerable.
