The Dollar weakens

The Dollar index was retracing to the upside from the 91.00 zone to the 94.00 zone, breaking on its way up above the 55 day EMA as shown on the daily chart. During such bullish retracement the stochastics indicator rose from the oversold zone to the overbought zone in 20 trading sessions. However, during the last 4 trading sessions, the stochastics fell to the oversold area, indicating that this time the drop has been faster. Therefore, the index may fall to the 92.00 level and a breakdown below the 92.00 level it may visit the low at the 91.00 level. On the other hand, the US fundamentals may support the greenback in the next few months and the Dollar index may try to go back to the 94.00 level or even try to break above that level.