Dollar is at risk of further drop

Investors and traders are becoming doubtful of the FED's move in September to hike rates from record low for the first time in almost 9 years as recent data from US continues to underwhelm. Many analysts believe that this week's three consecutive devaluation might force FED back to the table and to rethink its strategy.

Moreover recent risk aversion in the market has given a push to Yen, Franc and new safe haven Euro, along with Gold, which are trading strongly against Dollar this week.

FXCM Dollar index has broken below its recent range of 11980-12060, which had been in place since 21st July, 2015. Moreover, Dollar's attempt to crawl back into the range post break yesterday has soured with price firmly trading below the range as of now.

The index is currently trading at 11962, down after failed attempt around 12000.

Price pattern suggests, further drop in Dollar is possible.

With above view, Euro, Yen and Gold might move to further high. As of now, Pound and Franc is not suggested for long, since Pound is consolidating its range and hasn't broken it yet and Swiss national bank (SNB) remains big seller of Franc.