Dollar Index Outlook

Dollar index's strong break of 81.88 support completed a head and shoulder top pattern which suggests that rebound form 80.08 is already finished. Also, note that dollar index has indeed failed to take out 55 days EMA, which in turn argue that whole fall from 88.70 is possibly still in progress for another low 80.08. In such case, we'll be looking at the prospect of deeper medium term decline to 75 level upon breaking of 80. In any case, risk will now be heavily on the downside as long as 81.88 resistance holds and further fall will be in favor. Though, break of 81.88 will save the bullish case that 80.08 is the bottom and will turn focus back to 83.56 resistance instead.