SINGAPORE: The dollar index faces a resistance zone of 84.753-84.935 and may either hover around this range or retrace towards 83.512.
The zone has been formed by the July 9, 2013 high and the 50 percent Fibonacci projection level of an upward wave 3, the third wave of a five-wave cycle that developed from the May 5, 2011 low of 72.809.
There has not been a decent correction ever since the index rose sharply from the June 30 low of 79.759, such a correction may be triggered by the resistance zone.
A break above 84.935 will open the way towards 86.357, the 61.8 percent projection level.
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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