The Dollar Index has broken above the short-term resistance at 81.55-65 and is now testing 82. Prices have moved upwards in an impulsive pattern after correcting 61,8% of the initial rise from 80.76 to 81.71. It is breaking above these highs and our bullish target is now at 82.70. The signs are bullish and a longer-term trend reversal is expected to be confirmed.

The extended target for this upward move is near 83, but until then we will remain cautiously bullish with our stop at 81.20. We believe that the trend is changing to an ascenedant one and it can be clearly seen if you look at the daily chart below, where prices have broken upwards and above the downward sloping trendline.

Resistance is now found at 82 and 82.45. Breaking above 82.50 will bring more buyers and could accelerate prices towards 83. We are confident that the trend has changed and that we will not see for some time a break below 81 again for the Dollar Index. The longer-tem target is a new high above 85, but this will be confirmed as long as the upward momentum has power and the price patterns look impulsive (5 wave moves).