With continuous strength seen in US dollar Index, the question which comes to mind is whether this upside movement will continue in the near future. When analysed technically, it seems that US dollar index will see new highs over the next few months and what worries me is that, if this strength continues, will it help the US economy and will it bring some kind of balance to the global economy?
When analysed over a period of 10 years, it is seen that it has traded in a rectangular pattern which indicates a possible upside in a entity. It is seen that it rested on the higher side between 99.95-100.6 and took support between 92.52-91.88. The space between the two is approximately 8 points and as it has formed a bullish pattern, there is a possibility that itcan go high to the levels of 107.95 - 108.6 (approximately).
Therefore, as per the analysis, it is understood, that as it has managed to close and sustain above 100.6, higher levels in dollar index can be seen.