Dollar index knocking on the door of the 38.2 retracement level @ 94.303
The dollar index has pared losses on the day following the slip up in the euro, and is once again testing the 94.303 level as it did last Friday. The 38.2 retracement level is key for buyers to break above in order to establish the next leg higher in the greenback. The high today touched 94.308.
The thing about trading today is that it will be one mired by thin liquidity, so even if we were to get a break later on it is best to be wary that it could be a false break. I'd wait until tomorrow when US and UK traders are back to get confirmation of any breaks to the upside, and if so, a move towards the October high @ 95.150 will be eyed.
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