US dollar regained bullish bias after a mild correction during the last week and looks set for more gains as long as the incoming economic data does not disappoint.
There was a monster bearish trend line on the monthly chart of the US dollar index, which was broken a couple of months ago. This particular break has ignited a solid bullish momentum in the US dollar as can be seen in the chart attached. The dollar index almost tested the 100% extension of the last drop from the 88.70 high to 72.82 low. It looks like that it might head toward the 1.236 extension of the last leg in the near term. The most important point to note from the charts is the fact that the mentioned extension is sitting right around the 2005 high. So, it would be interesting to see whether the US dollar index can move towards the 92.50 level or not. In that situation, we might witness a solid selling interest as it represents a major swing area.