Above is the daily chart of US Dollar Index (.DXY). We can see that the index just broke out the green down-trend line.
This might be due to the fact that European Financial Stability Facility is currently under pressure and it will take some time before any important decisions are made.
Back to the chart, after breaking out, the index will try to surge further.
I have identified two possible resistant-force providers:
The first one is the horizontal zone ranged from around 76.0 to 76.4. This area has been resisting the index for several times, and thus its power should not be underestimated.
The second resistant is the red up-trend line. This is relatively weaker than the resistant area mentioned above, but we have to be aware of the level 75.5 currently, and will reach the resistance area later on.
Therefore, I expect that the index will be continue moving upward, but it should be processing slowly. Then some day in Mid-September, the two resistant will meet and the selling force should be even larger.
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