The Dollar Index Chart (DXY) is basically the reverse of the Euro chart, as can be seen on the daily comparisons below.
To me the formation still look bullish for the dollar as long as we remain above 94.30 (below EurUsd 1.1675)on a daily closing basis, which keeps the head and shoulder formation intact, and allows for an eventual move to an objective at somewhere around 97.60, (EurUsd: 1.1250ish). This pretty much ties in with the 50% Fibo pivot of the decline from 1.0376/91.01 although there are some big hurdles to climb before we reach that, notably the 38.2% Fibo level at 95.90 and the 200 DMA at 96.65.
The momentum indicators for both the daily and weekly charts look positive, so until we break decisively back below the neckline (94.30) I prefer to be long dollars. A break back below 94.30 would allow a quick run to the 100 DMA at 93.85 and then to the rising trend support line, currently at 93.70. Below here would see the dollar take a more bearish turn and I would be out of all long positions quite quickly.
DXY – Daily
EurUsd – Daily
DXY – Weekly