US Dollar Index to plunge towards July low of 91.78 o a close below 93.45 – Commerzbank

The US Dollar Index (DXY) has tested and continues to remain capped by resistance is 94.47/80. Meanwhile, it is underpinned by the 93.62 2021 uptrend. Strategists at Commerzbank await the break from this range to determine direction.

DXY to advance towards 96.10, then 97.73 on a break above 94.80

“The Elliott wave count continues to imply failure at key resistance namely the 38.2% retracement of the move down from 2020, September 2020 high, the 55-month ma and the 200-week ma at 94.47/80. Above here would target the 96.10 then 97.73 Fibo resistance.”

“Only if DXY closes below the uptrend at 93.45, would this be enough to trigger another leg lower initially to the 55-week ma at 91.88 and the end of July low at 91.78.”