Dollar index to rise to 80.187

SINGAPORE: The dollar index is expected to revisit its Jan. 18 high of 80.187, driven by an upward wave c.

This wave started at the Jan. 14 low of 79.345 and is expected to travel above the upper trendline of a wedge. A Fibonacci retracement analysis on the fall from the Jan. 4 high of 80.868 to 79.345 reveals the trendline is about 80.509, the 76.4 percent level.

It seems the 0.764 ratio has been adopted in the construction of the wedge, as demonstrated by the bounce from the Dec. 19, 2012 low of 79.008, which ended around 80.878 and the retracement from the Jan. 4 high of 80.868, which stopped around 79.447.

As a result, the index may keep climbing to 80.509, after it reaches 80.187.