New ceiling for the dollar index

The dollar index, which measures the strength of the greenback versus six of its major counterparts, has risen rapidly during this Wednesday’s session after the Federal Reserve of the United States raised its interest rates by 0.25% to leave them at 0.75%. According to most analysts, the rate hake was already priced in to the markets before the announcement; none the less, the dollar index managed to rally and made another higher high at the 102.34 level. On the daily chart we can see that the index has formed what it appears to be a broadening wedge or a flag with a bullish breakout. If the index retraces to the downside, then the 100.00 level could act as support. The zone between the 99.00 level and the 99.47 level could also act as support.