USD correction to continue

Early signs of a breakdown from a narrowing range indicate a shakeout is likely to develop for the Dollar Index in the coming weeks, says Ari Wald, Technical Analyst at Oppenheimer.

Wald expects the Dollar Index (DXY) to correct to the 92 level which marks the index’s late-2005 peak as well as a key retracement (38.2%) of its gains between 2014 and 2015.

See Chart.