The dollar is set to strengthen from its current base and could rebound toward 78.50 points if the trend higher is confirmed, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC Tuesday.
"The dollar is trying to find strength around current levels in the dollar index," Akker said. It "is trying to find a bottom above the solid horizontal support line at 74 (points)."
The index has failed to close above its resistance level of 75 points for nearly a week, but once that happens, it will confirm a bottoming scenario, Akker said. The 50-day moving average line for the index is at 75.75 points, so a close above that level would add weight to the signal, he said.
Once the higher trend is confirmed, the index will likely break above the horizontal resistance level at 76.60 points. This would give a short-term buy signal to test the falling 200-day exponential moving average line, which is currently at 78.50 points, he said.
"This market is trying to find a bottom and we like to see dollar strength within the next few weeks, two months," Akker said.
- Watch the video above to see Roelof van den Akker's view on bund futures.
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