SINGAPORE: The dollar index may rise further to 81.854 in a week, driven by a wave c.
This is the third wave of a three-wave cycle that developed form the May 8 low of 78.906. It is capable of travelling a similar distance as the preceding wave a, to arrive at 81.854, its 100 percent Fibonacci projection level.
A Fibonacci retracement on the fall from the July 9, 2013 high of 84.753 to 78.906 reveals a similar target at 81.83, the 50 percent retracement.
The correction from the July 31 high of 81.573 may end around a support at 81.046, 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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