Will US Dollar Index test 95?

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The rally in the US Dollar Index gathered momentum last week. The index rose sharply, breaking above the key resistance level of 94. A strong surge in the Treasury yields aided the rise in the dollar index. The strength in the dollar index dragged the euro sharply lower, which tumbled below the crucial support level of 1.1680 to test a low of 1.1563 towards the end of the week. The euro closed at 1.1594 on Friday, down 1.06 per cent for the week. The dollar index closed at 94.07, up 0.85 per cent for the week.

Dollar Index: Support ahead

The US Dollar Index (94.07) surged to a high of 94.50 on Thursday and has come off from there. However, an important support is at 93.80. A bounce-back move from this support can take the index higher to 94.50 again. Also, as long as the index sustains above 93.80, the outlook will remain bullish and the chances of seeing a break above 94.50 and a rise to 95 and even higher levels cannot be ruled out.

The index has to…

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