Dollar index to find support at 78.398

SINGAPORE: The dollar index will find support at 78.398 in a week, and rebound towards 79.744.

The current sharp fall from 84.10 is against a preceding rise from the May 4, 2011 low of 72.696. A Fibonacci retracement analysis reveals support at 78.398, the 50 percent level.

Increasing the chance of the rebound is a possible pullback towards the trendline that rose from the Aug. 30, 2011 low of 73.611.

The immediate rebound target will be 79.744, the 38.2 percent retracement.

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.