The Dollar Index goes back up

The Dollar Index breaks again above the 200 day EMA (blue line) at the 99.28 level and tries to regain its bullish momentum. If the index continues rallying, its next resistance zone could be the high that it made at the 101.25 level. Another possible scenario is that the index could go a little bit higher to then come back to the 200 day EMA and form what it is known as a pullback and reverse pattern, where the 200 day EMA could act as a support and the index could continue heading higher. However, we must keep in mind that the 200 day EMA is very horizontal, which means that the instrument could enter into a consolidation around that zone, without taking a clear direction unless something extraordinary happens with the US fundamental data. If the Dollar Index breaks below the 200 day EMA, its first support level could be the 98.41 zone, followed by the 98.00 round number level. Below the 98.00 level, the index practically has the road clear to drop all the way to the 96.00 level.