Technical Talk: Dollar Index Likely Heading Into Resistance

The US dollar is likely heading for some resistance after incessant gains in last few weeks. The Dollar index is currently quoting just below its six month high of 93.94. The index gained sharply since the middle of last month as a break above the critical 90 levels triggered good upside for the index. However, technical cues are pointing to some moderation now. The weekly charts indicate that the index has risen for four consecutive weeks and is testing its 100 week Exponential Moving Average (EMA) – placed around 93.72 right now. The weekly charts have also broken out above their higher Bollinger Bands, likely showing that some correction could be expected now.