SINGAPORE: The dollar index is expected to break a resistance at 81.351 and rise more towards 81.999 in a week.
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 has climbed above a rising channel, and the upper channel line of a duplicated channel points to 81.999 as well.
Support is at 80.611, a fall below which will indicate a false break above a former resistance at 80.702, the 38.2 percent retracement, and the index may correct into a range of 80-80.24.
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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