The dollar index remains in strong uptrend for the third consecutive week and moving within bullish channel from $91.20 (20 Sep low).
The price is heading higher within thick daily cloud and posted new high at $93.93 (the highest since 17 Aug) after bullish signal was generated on Thursday’s strong rally and close above $93.61 (Fibo 50% of $96.24/$90.97 Jul-Sep downleg).
Bullish daily techs and weekly studies regaining traction, suggest further upside, as rally in past three weeks generated initial reversal signal which could result in stronger correction of larger fall from $102.23 (05 Mar high) to $90.97(03 Sep low).
Bulls eye initial targets at $94.04 (16 Aug high) and $94.23 (Fibo 61.8% of $96.24/$90.97) which guard pivotal barrier, provided by daily cloud top at $94.44. Close above cloud would generate strong bullish signal.
US jobs data are in focus, with better than expected numbers in September to further inflate the greenback.
Res: 94.04, 94.23, 94.44, 95.00
Sup: 93.72, 93.47, 93.23, 93.07
