Dollar Index: Resumes Upside Offensive, Risk Set For The 78.87 Level (Index Technical Outlook)

Dollar Index: Resumes Upside Offensive, Risk Set For The 78.87 Level (Index Technical Outlook) US Dollar Index: With a reversal of its previous week losses occurring at the end of the week, US Dollar Index is now set to strengthen further with eyes on the 78.87 level.The Index continues to hold on to its medium term theme since turning off the 72.69 level. This has opened the door for further strengthen through the 78.87 level and towards its Nov'2011 high at 81.44. Above here if see will set the stage for a run at the 83.55 level, its Aug'2011 high. Its weekly RSI is bullish and pointing higher supporting this view. Alternatively, its Sept 12'2011 low at 77.78 level will come in as the initial support followed by the 76.06 level and subsequently, the 73.42 level, its July 27'2011 low. Further down, support stands at the 72.69 level, its early May'2011 low where a firm break will have to occur to annul its present upside theme and then bring further weakness towards the 71.50 level, its July 2008 low.