The US Dollar Index (93.46) rose back last week and closed on a strong note above 93. The euro failing to break above 1.18 and falling sharply below 1.17 took the index above 93 in the past week. The strong close above 93 keeps the near-term outlook bullish for the dollar index. Immediate supports are at 93.20 and 93. A further rise to 94-94.30 is possible this week.
It will be important to see if the dollar index sustains above 94 and gets a strong follow-through rise above 94.30 or not. Such a break above 94.30 will be very bullish which, in turn, will open doors for a fresh rise to 96 over the medium term. Inability to break above 94.30 can drag the dollar index lower to 93-92.50 again. The price action in the 94-94.30 region will need a close watch this week.
The euro (1.1695) failed to break above 1.18 last week. The currency made a high of 1.1801 and reversed sharply lower to a low of 1.1664 before closing at 1.1695 for the week. The…