Dollar index to retrace to 80.702

SINGAPORE: The dollar index is expected to retrace to 80.702 in a week as it did not break a resistance at 81.351.

The resistance is provided by the 50 percent Fibonacci retracement on the fall from the July 24 high of 84.10 to the September low of 78.601. The index's failure to overcome this barrier indicates a dissipation of the bullish momentum, and a retracement to the 38.2 percent level at 80.702 is due.

A bullish target at 81.999, the 61.8 percent retracement, will be confirmed should the index climb above the Nov. 1.