Markets

Dollar index eyes 81.351

Published November 5, 2012 Updated November 5, 2012 08:43am

 

The resistance is the 38.2 percent Fibonacci retracement on the fall from the July 24 high of 84.10 to the September low of 78.601.

 

A high-low bottom formed between Sept. 14 and Oct. 17 points to 81.351, the 50 percent level, indicating a good chance of the index to go above 80.702.

 

Since the euro is a big component of the index, the double-top pattern on the daily chart of euro/dollar confirms a further gain of the index.

 

Copyright Reuters, 2012