Dollar Index plunge to hit second target – Is it going to rise now?

What’s up, traders.

As discussed in previous update Dollar Index plunges to complete 23.6% retracement, the dollar index finally hit our long-term target level of $95.85. We recommended staying bearish since the index was stuck $96.60. Alright, it is done now, what’s next?

Dollar Index – Daily Chart

You can see in the daily chart, the dollar has come down to test the horizontal support extended by violated ascending triangle pattern at $95.45.

It was sort of a triple top resistance level which will likely work as a support now. The 20 periods moving average is there to support the bullish retracement.

DXY can bounce off above $95.45 to target $95.85 and $96.15. Elsewhere, the index can dip further until $95.18 (61.8% Fibo level) on the violation of $95.45. Good luck!