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The US Dollar Index had a bullish session on Thursday, bouncing off of the uptrend line that we had pointed out Wednesday. This move should know been much surprise, and in fact much of it would have, at the expense of the Euro which of course has been overbought recently.
The real question then becomes whether or not any potential Federal Reserve quantitative easing in September will weigh upon the value of the dollar. So far, there is no major suggestion that it will based upon the charts. With this in mind, we are still buying the Dollar Index as long as we are above the 82 level. We figure that this market will continue to run within the channel, and probably has an ultimate target of 84.50 or so. On the other side of the trade, if we do manage to slip below the 81.50 handle, we are more than willing to start selling again.