Like commented last week the Dollar Index is at important support zone and any break down from here can lead to test the Lows and perhaps go on making new ones too! But we will get to that when we get there, as of now a quick glance at the weekly chart below tells us that USD Index needs to break out of this red band to breakout for a breather!
Even the daily chart with its Divergence is hinting at stretching out from here and test the 50 periods MA and the trend line resistance overhead.
Ok another angle I am putting forth is that while watching USD Index you might as well have an eye on the good old Japanese Yen! See the chart below which shows YEN vis a vis the USD. If the YEN breaks out of the Dec/Jan Highs (ellipses), that wouldn’t augur well for the dollar.
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