The Dollar Index is showing signs of a trend reversal as prices seem to find support near the 82 price level. The 82 price level was our target to end the downward correction and it seems that the market things this level is important and that is why the downtrend has paused the decline here. Long-term trend remains up as long as prices trade above 80. Intermediate term is down as long as prices trade below 83.45. Short-term trend has changed to up and is ready to challenge the intermediate-term trend.

Prices have shown a similar pause to the decline at the 82.65 price area and then broke downwards. Prices currently have made two lows on higher than the other at the 81.92 and 81.95 price level. This second higher low even if it is slightly higher it produces a higher high. The dollar index has broken out of the short term downward channel as shown in the chart below. The high at 82.26 was broken and a new higher high at 82.41 was made. This pattern of higher highs and higher lows is a significant sign of trend change. For this sign to remain valid we should not see prices break below 81.90. If prices break below 81.90 we should expect a push towards 81.70 at least. Short-term resistance is found at 82.45 and 82.70 price levels. Bulls will need to break above those levels in order for the intermediate down trend to be challenged.

Concluding we remain slightly bullish as long as prices stay above 81.90 and will add to longs as resistances are broken. If prices break above 82.70 we will add to long. We will close all longs below 81.90.