The US Dollar Index has lost corrective support on the back of renewed strength in risk appetite. The EUR/USD is now probing the upper half of it's recent range since rebounding off the 50-day MA on Tuesday, but has stalled at 10-week trendline resistance. A sustained clearance of 1.4130 (current location of trendline) will quickly propell the EUR/USD towards the 2009 high established on June 3rd. Moreover, daily RSI has formed a double bottom base in the 40 region, which is characteristic of a bull market. If the Greenback maintains the 79.02 level (78.6% retracement) and the EUR/USD fails to clear trendline resistance, then focus will shift back to the 50-day MA.
