We mentioned yesterday that the Dollar index had changed its short-term trend to upward, and that if resistance at 80.15 was broken and if the longer-term downward sloping trend lines were broken, the longer-term trend would be challenged. The Dollar index being pushed higher mainly by the sharp decline in EURUSD, has broken all short-term resistance levels and moved higher than the 76.4% Fibonacci retracement confirming that the trend is upward and bullish momentum is being built.

The upward sloping channel supports the trend. Short-term support is found at 80.30 and then at 80.15. Short-term resistance is found at 80.65-70. If this resistance is broken then this will be very bullish for the Dollar index as this is the area of an important previous high.

The daily chart shows how longer-term trend is being challenged. The first downward sloping trend line was broken. Now prices test the second downward sloping trendline. Breaking above 80.65-70, we could confirm that longer-term trend is changing to neutral with expectations of turning bullish.