The Dollar index stays bullish

On the daily chart of the Dollar index we can see that the instrument had a good rally from the 95.70 zone to the 98.00 zone. During the past few days, the index was consolidating around the 98.00 zone, but today it breaks to the upside and it could continue going higher, especially when we see a “golden cross” on the moving averages. The golden cross is when the 55 day exponential moving average, purple line, crosses above the 200 day exponential moving average, blue line. The golden cross has bullish implications; therefore, the index may try to reach the 98.59 level, which could act as resistance. The index is clearly over-extended to the upside and it could try to retrace to the downside. If the index retraces to the downside, then its next support could be the 97.00 level.