US Dollar Index: With the Index bearish and threatening further downside, there risk of continued weakness in the days ahead. This development leaves it targeting the 79.68 level, its Dec 27 2013 low where a decisive violation will resume its medium term downside towards the 79.00 level, its psycho level.
Further down, support comes in at the 78.50 level and subsequently the 78.00 level. Its daily RSI is bullish and pointing lower supporting this view.
On the other hand, resistance resides at 80.50 level, its psycho level where a breach will aim at the 80.82 level, its Dec 20 2013 high.
On a cut through here, further bullishness could follow toward the 81.48 level with a push through this level setting the stage for a run at the 82.00 level. All in all, the Index continues to face upside threats in the short term.
Guest post by FX Tech Strategy
