US Dollar Index: Although closing marginally higher the past week following a reversal of its two-day losses from the 77.30 level, the Index continues to maintain its medium term bullishness triggered from the 72.69 level. On further bullish offensive, the Index will aim at the 79.59 level with a violation of there allowing more strength towards its Nov’2011 high at 81.44. Above here if seen will set the stage for a run at the 83.55 level, its Aug’2011 high. Both its daily and weekly RSI are bullish and pointing higher supporting this view. Alternatively, its Sept 12’2011 low at 77.78 level comes in as the initial support followed by the 76.06 level and subsequently, the 73.42 level, its July 27’2011 low. Further down, the key barrier stands at the 72.69 level, its early May’2011 low where a firm break will have to occur to annul its present upside theme and then bring further weakness towards the 71.50 level, its July 2008 low. All in all, with the Index continuing to retain its bullish tone in the medium term, further bull pressure is expected.
