US Dollar Index: With continued bull offensive remaining intact following its past week strong close, the Index is entering the new week aiming at further higher prices. This will open up upside risk towards its key resistance coming in at the 79.83 level, its Oct 04’2011 high with a deceive clearance of there turning focus to its Nov’2011 high at 81.44. On further price extension above here, the stage will be set for a run at the 83.55 level, its Aug’2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullbacks, the 77.97 level will come in as the initial support with a violation of there exposing the 76.71 level. A possible bounce higher could occur here but if breached, the Index will face further downside pressure towards the 73.42 level, its July 27’2011 low. Further down, key barrier stands at the 72.69 level, its early May’2011 low. All in all, with the Index continuing to retain its bullish tone on continued upside strength, further gains are envisaged in the new week.
