Dollar Index is testing the key support level, 90 ahead of CPI data and ECB meeting. Net non-commercial positions made a bottom around -15000 this year. Since 2008, whenever positions bottom around -15000, the dollar index entered a bullish period. But usually, prices remain flat or sometimes negative for a few months after the signal. This buy signal only failed one time which the price remained flat until the next signal.
The 89-90 zone will be key for the direction of the price. The broken wedge formation is supporting the upward moves too. But a possible head and shoulders over the 89-90 zone may form in the shorter term. Today’s CPI data and ECB meeting will be very important for the Dollar Index as well as most of the assets around the world.
