As written in the article of 10 October 2019, the Dollar Index was in the formation of an important “Double Top” on a weekly basis, which would have been completed with the break down of its “neckline” in the 97.60 area. In fact, a week later, the prices have breoken down this level, confirming the completion of the downward reversal pattern.
n this context, it is not excluded for the next few days a “pull back” movement towards the previous support area – now become resistance in the 97.60 zone. From these levels new descents can be generated that identify subsequent targets in the 96.70 area and the lower ones at 96.00.
A weakness of the Dollar Index could therefore favor a potential reaction of the commodities sector (commodities against the US dollar).
DOLLAR INDEX WEEKLY (DEC-19 CONTRACT)