US Index Breaks Resistance

On the daily analysis of the US Dollar Index it is clear that price has breached the medium term resistance on the downward trend. As you can see we have highlighted the market structure. Price was forming lower highs and lower lows until recent when we saw price show a break out of the trendline to the upside.

This formed a higher high as shown, price then came back to the downside and formed a higher low. Since we have seen price slowly make its way into bullish territory, showing a strong push to the upside on Friday.

Price is above the 20 & 50 EMA's with only one bullish rejection on Friday. If price continues to the upside, the 20 & 50 EMA's will cross bullish, as they are already touching. The next barrier in the way for the US Dollar index is the daily 200EMA. Then we have the 12125 resistance.

Chart: US Index D1