The announcement by the Fed yesterday to continue with the tapering of the QE program has strengthened the Dollar. The short-term downward sloping resistance trend line was broken and the index reversed higher towards short-term resistance of 80.85.

Short-term important support is 80.40. If this level fails to support the index then we will see prices reach the 80.10 level or even lower. If the index remains above 80.55, chances of reaching the important resistance of 81.15-25 are likely to increase.

The daily chart continues to show how prices now have moved above the two Moving averages that are now crossed and have given a bullish signal. On a daily level as long as the index trade above 80.20-30 we should expect the highs near 81.30-40 to be tested. Breaking above the blue area as shown in the chart above, will increase the chances of reaching 82.50-83.