US Dollar Index: With the Index halting its strength and triggering a corrective pullback for a second day in a row, the risk is for more downside to occur. However, the Index continues to hold its broader medium term upside bias suggesting its present weakness is temporary. An extension of the mention declines will call for a run at its May 14’2012 high at 80.35 level with a cut through here targeting its psycho level at 80.00 level. Further down, support lies at its Feb 06’2012 low at 78.36 level followed by the 77.97 level. On the upside, the 81.78 level, its Jan 2012 high comes in as the next upside with a clearance of here setting the stage for more strength towards the 83.55 level, its Aug’2011 high and possibly higher targeting the 84.55 level. All in all, the Index continues to retain its medium term upside bias though backing off higher prices.
