The Dollar Index continued to trade below the resistance trendline yesterday. The short-term resistance is found at 81.55-65-75. The short-term support is found at 81.25-05. The trend is neutral and the decline from the recent highs at 81.76 looks corrective as the price action is overlapping.

Today, the price has made a short spike above the resistance level and we believe that it is very possible that a breakout is starting and that the uptrend is resuming. More signs of strength should be given by the Index. The price should make a clear break above the 81.75 resistance level in order to give the signal of serious strength. We are cautiously bullish expecting the trend to reverse upwards.

In the daily chart we observe that today's candlestick is breaking above the trendline, but we also need a daily candle that will break above the previous highs at 81.76. The slope of the MA is negative and this is not a good sign for the longer-term trend. However, these indicators are lagging, so we might need to give them more time. Breaking above these two MA will also be a good bullish sign and evidence that the trend is reversing.

Concluding, we are cautiously bullish and want to see more evidence that bulls are back. The resistance level of 81.76 must be clearly broken in order to make our view to 100% bullish. Until then we remain mostly neutral.