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Markets

Dollar index eyes 81.351

Published Updated

 

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