Decisive level for the Dollar Index

The Dollar has been hit hard by its main counterparts, especially by the Euro and the Pound, which have continued with their bullish trend during today’s session. On the weekly chart of the Dollar Index we can see that the index has fallen to the 91.00 level, zone which already acted as support in mid-August of last year. If the index manages to bounce to the upside, it could be forming a double top pattern, which is a bullish reversal formation, but in order for the pattern to be confirmed, the index must first break above the 95.00 level. Before reaching the 95.00 level, the index may find some resistance on its 200 day EMA around the 94.00 level. Due to the fact that this is a weekly chart, the analysis would have to be considered for the mid or longer term. In case of a breakdown below the 91.00 level, the index may fall to the 89.35 level.