US Dollar Index: Although price hesitation saw the Index turning off the 1.3322 level to close marginally higher the past week, its broader medium term uptrend started from the 1.2623 level remains intact. However, a decisive violation of the 1.3322 level is required for US Dollar Index to trigger that uptrend towards the 83.55 level, its Aug’2011 high. Further out, resistance resides at the 1.3485 level followed by the 1.3568 level. Its weekly RSI is bullish and pointing higher suggesting further upside gains. Alternatively, on the down side, its Feb 06’2012 low at 1.3027 level comes in as the initial target with a breach of there turning attention to the 79.51 level, its Jan 03’2012 high. Further down, support stands at the 77.97 level and then the 76.71 level. A possible bounce higher could occur here but if taken out, the Index will face further downside pressure towards the 73.42 level, its July 27’2011 low. All in all, the Index may have backed off higher prices but continues to retain its medium term bullish tone.
