The Dollar Index has found support at the 61,8% Fibonacci retracement or 81.50. Prices have broken out of the downward sloping trendline but not higher from the previous high at 81.97. We remain neutral as we need to see more evidence that the trend has reversed. This downward corrective wave is very possible to have ended near the 61,8% retracement. That is why we are ready to enter long if prices break above the last high at 81.74 with 81.35 stop and 82 as the first target.

The daily chart below still shows that the index remains close to its longer-term support. The 80.70-81 price range is very important support and should not break if bulls want to see prices challenge the previous high near 85. Our view remains neutral but we feel there are rising posibilities of a trend reversal from this price level.

The longer-term upward sloping channel as shown above supports our view that we should anticipate an upward move if the lower boundaries of the channel are held. The longer prices trade close to the lower boundaries of a channel, the sharper the upward move towards the upper boundaries will be. Concluding we remain neutral and slightly bullish expecting more signals that the trend will be reversing upwards.