The dollar index has been broadly stable over the last couple of weeks. The index was stuck in a narrow range of 103.75-104.93 last week. It has closed the week at 104.31, down 0.37 per cent.
As the market enters the year-end holiday season, we can expect muted trading over the next couple of weeks. There is no major data release also from the US for the coming week. As such, we can see the dollar index continuing to remain stable and in a sideways range for some time.
The dollar index (104.31) has been broadly range bound between 103.50 and 105 over the last two weeks. This range can continue to remain intact at least in the coming week too, on the back of reduced trading volume ahead of the new year.
As such we have to wait for a breakout on either side of 103.50-105 to get a clear indication on the next leg of move. A break below 103.50 will drag the dollar index down to 102.50-102 – the crucial support zone. On the…