The dollar index has been rising since the start of the third quarter. Tapering’s bullish effect is pressuring the index for some time and some of it is priced in already. Because of that, yesterday’s FOMC caused “buy the rumor sell the fact” on the price. 93,000 is the first key support if it breaks, the dollar may fall to 92.325 or 91.900 in the coming month. Spearman indicator has also given a sell signal, but, can such a fall happen as close to tapering start is a good question. But below 91.900 pricing will be highly unlikely.
For upside moves, the upper line of the trend channel, 93.950 will be key. Over this resistance, the dollar index may enter a higher pricing wave zone, and test the 94.500 in the short term.
