Charts: Dollar Index May Have Bottomed; S&P Peaked
The dollar index appears to have bottomed out and will likely trade sideways in the short term, if not rise, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC Tuesday.
In "my opinion, this could be the main story for the financial markets in the coming weeks as the dollar index has broken its downtrend for the very short term," Akker said.
"We are looking for a bottom above the horizontal support at 75 (points) and a close above the 50-day moving average line at 76 (points) and horizontal resistance at 76.50 (points) is confirming the recovery of the dollar story against many other currencies," he said.
The index, which weighs the dollar against a basket of other currencies, has broken its negative trend line and that suggest sideways price action ahead, Akker said.
The next resistance level will be between 78 and 79 points, Akker said as the index edged about 75 points Tuesday.
"If the dollar index breaks about 76.50 (points), my price target would be 81 (points) for the coming months, so that's a clear recovery for the U.S. dollar," he said.
Akker also thinks the S&P 500 could be topping out at current levels, watch the video above for the details.
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