FxWirePro: Dollar index likely to correct towards 92.5 area

The dollar index has reached several of our short-term bullish target, https://www.econotimes.com/FxWirePro-Call-Review-Book-partial-profits-as-Dollar-index-reaches-target-target-extended-further-1322646)

However, after reaching 95 area last week, the dollar index has declined 94 area as of today. And our calculations, based on the latest price actions suggest that the index is likely to correct further before it rises further. We have recently changed our long-term outlook for the dollar from bearish to neutral and extended the bullish target from 94.6 area to 99 area.

Based on our calculations, we expect the index to decline towards 92.5 area. Our readers can take short-term short positions in the dollar, however, we must warn that the risk-reward as of now doesn’t look very attractive since the stop loss for this trade must be kept close to the recent peak. The recent peak around 95 area also coincided with the long-term downtrend line that has been in place since the dollar’s decline in 2017.