Dollar index to test support at 95.569

SINGAPORE: The dollar index may test a support at 95.569 in a week, a break below which could cause a loss to the next support at 93.808.

These supports are provided respectively by the 138.2 percent and the 123.6 percent Fibonacci projection levels of an upward wave 3, the third wave of a five-wave cycle from the May 4, 2011 low of 72.696.

The consolidation from March 13, 2015 has been shaped into a triangle, which could most likely be a bullish pattern, indicating a good chance for the index to stabilize around 95.569.

Resistance is at 96.992, the 150 percent level, a break above which could lead to a gain to 98.414, the 161.8 percent level.