SINGAPORE: The dollar index is expected to gain more to 89.048, as it has broken a resistance at 87.155.
The resistance was formed around the 76.4 percent Fibonacci projection level of an upward wave (3) or wave C that started at the May 8, 2014 low of 78.906. Both of these waves are capable of traveling to 91.622, the 100 percent level. The next resistance will be at 89.048, the 86.4 percent level.
A break below 87.155, now a support, could trigger a further drop to 86.20, a lower support established by the trendline descending from the March 4, 2009 high of 89.624.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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