US dollar continues to rally
The US Dollar Index has rallied heavily since the mid October low of $93.91, helped in no small part by a dovish European Central Bank and strong US jobs data. The continued stepped move higher, means that traders see each a pullback as another opportunity to buy in, and as of yet we have seen no signs that this is any different. As such, an upside breakout is expected before long, as signified by a close above yesterday’s high of $99.44. The next major resistance comes at $100.27, followed by $100.79. We would need a move back below $98.00 to negate the bullish view.