US Dollar Index: With continued bullish momentum remaining intact following Dollar Index’s medium term rally started from the 74.72 level, its Oct 2011 low, it now looks to take out its key resistance zone at the 81.31/44 levels. The Index will have to decisively break and hold above this key zone to extend further bullish offensive towards the 82.82 level, its .618 Fib Ret (88.70-72.69 declines) with a breach of here turning attention to the 83.55 level, its Aug’2011 high. Both its daily and weekly RSI are bullish and pointing higher suggesting further strength. Alternatively, on any pullbacks, the 79.51 level, its Jan 03’2012 high will come in as the immediate support where a break will aim 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, with the Index continuing to retain its medium term bullish tone, further upside gain is expected in the days ahead.
