US Dollar Index: Holds Below Falling Trendline, Trend Resumption Looms.

US Dollar Index: As long as the US Dollar Index continues to hold and trade below its long term falling trendline(clearly seen on the weekly chart), our bias remains lower for an eventual resumption of its long term downtrend which is now on hold.The 72.69 level, its early May'2011 low comes in as the initial support with a breach of there setting the stage for a run at the 71.50 level, its July 2008 low and subsequently its 2008 low at 70.79. Both its daily and weekly RSI are bearish and pointing lower suggesting further weakness. Alternatively, a break and hold above its falling trendline and the 75.38 level, its Aug 05'2011 high must be established to halt its bear threats and allow the Index to strength further towards the 76.71 level and then the 77.38 level. All in all, the Index continues to consolidate with downside bias. Written By FXTechstrategy.com