The dollar has gradually been rising over the past 4 weeks, but there hasn't yet been any major headlines on the strength of the buck. Despite Yellen's hinting toward a hold on raising rates in September, the dollar is still gaining ground, which makes me think that the Dow Jones-FXCM US Dollar index may break above its June highs pretty soon. There's a clear resistance level at 12,040 points, which if broken, may pave the way for a rally back up to this year's highs at 12,160 points. If this is the case, the euro is likely to fall back to $1.05 sometime around the beginning of August.
