Dollar Index Keeps Bullish Outlook

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( fxtechstrategy.com) -- Although closing marginally higher the past week following a reversal of its two-day losses from the 77.30 level, the Dollar Index continues to maintain its medium-term bullishness triggered from the 72.69 level.

On a further bullish offensive, the index will aim at the 79.59 level, with a violation there allowing more strength toward its November high at 81.44. A break above that level will set the stage for a run at the August high of 83.55. Both its daily and weekly RSI are bullish and pointing higher supporting this view.

Alternatively, it's the Sept. 12 low of 77.78 level comes in as the initial support followed by the 76.06 level and subsequently, the July 27 low of 73.42. Further down, the key barrier stands at 72.69, its early May low. A firm break will have to occur there to annul its present upside theme and bring further weakness toward the July 2008 low of 71.50.

All in all, with the Index continuing to retain its bullish tone in the medium term, further bull pressure is expected.

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.