US Dollar Index: Although the Index is vulnerable to the downside, it continues to hold on to its broader medium term upside. As long as it continues to hold above its medium term rising trendline(blue), its outlook remains higher with eyes on the 80.73 level. A violation of here will call for a run at 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. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullbacks, its rising trendline currently seen at 78.70 level will be targeted followed by its Feb 06’2012 low at 78.36 level with a breach turning attention to the 77.97 level and then the 76.71 level. All in all, the Index continues to retain its medium term upside bias though vulnerable.
