US Dollar Index: With the Index continuing to hold on to its medium term uptrend and maintaining above the 81.78 level, its Jan 2012 high, there is risk of further upside gains. In such case, further upside should target the 84.00 level and possibly higher towards the 84.55 level. Further out, resistance resides at the 85.00 level, its psycho level.Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 83.55 level, its Aug’2011 high where a break will aim at the 82.50 level and then the 81.78 level. A reversal of roles as support is expected to occur here and turn the index higher. However, if this fails its May 14’2012 high at 80.35 level will be targeted with a cut through here targeting its psycho level at 80.00 level. All in all, the Index continues to retain its medium term upside bias with eyes on further strength
