No real progress for the Dollar index for the last 7 months.

The Dollar index made an important low at the beginning of the year around 89.40 and started an upward reversal towards 93.30 where it topped in March of 2021. Since then price made another pull back towards the 89.40 lows and is now bouncing higher once again.

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Blue lines -Fibonacci retracement levels

The Dollar index has so far made a double bottom around 89.40 and is now challenging the recent highs of 2021. So far price has not managed to reach the 38% Fibonacci retracement of the decline from 103. Inability to reach and surpass the 38% Fibonacci retracement will be a sign of weakness. Breaking below 89-89.50 would be an important bearish signal that could bring the index as low as 80-77.

The material has been provided by InstaForex Company - www.instaforex.com

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