The US dollar index closed moderately higher today, continuing the reaction from yesterday and confirming the formation of the latest Short-Term Cycle Low (STCL) as predicted by the cycle low signal that was generated yesterday.
The rally from August 2011 continues to hold above uptrend support and technical indicators on the weekly chart are being repaired gradually as the index consolidates following the overbought correction at the beginning of the year.
The uptrend is facing an important test in this area and a meaningful signal with respect to long-term direction will likely occur sometime during the next several weeks.