US Dollar Index: With the Index reversing its intra day losses to close higher on Thursday, risk of further bull pressure is now expected. In such a case, its July’2012 high at 84.10 will be targeted where a breach will turn focus to the 84.55 level. Further out, resistance resides at the 85.00 level, its psycho level followed by the 86.25 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support lies at the 82.73 level, its July 19’2012 low followed by the 82.19 level. A cut through here will aim at the 82.00 level and then the 81.78 level. A reversal of roles as support is expected to occur here and turn the index higher. However, if this fails to occur, its May 14’2012 high at 80.35 level will be targeted. All in all, the Index continues to retain its medium term upside as it looks to strengthen further.
