US Dollar Index: With the index maintaining bullish offensive started from the 78.09 level, the risk is for it to strengthen further towards key resistance located at the 80.11 level, its Feb 16’2011 high. A decisive clearance of that level 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. Further out, resistance stands at the 84.55 level. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, its Feb 06’2012 low at 78.36 level comes in as the initial target on any pullback with a breach turning attention to the 77.97 level and then the 76.71 level. A possible bounce higher should occur here but if violated, the Index could face further downside pressure towards the 73.42 level, its July 27’2011 low. All in all, the Index continues to retain its medium term upside bias as it looks to recapture the 80.11 level.
