'Real Panic Going on' in Dollar Index: Charts

The dollar index looks set to continue its rapid decline and could fall below 72 point before the end of October, a level not seen since mid-2008, independent trader and technical analyst Bill McLaren told CNBC Friday.

"This is a real panic going on," McLaren said. "My gosh, the way this thing is running down here we could see the 71s without a problem."

McLaren expects the index to hit a low on October 29, but said there is a small chance the move could become exhausted on the 20th.

McLaren added that he had expected the index to reach a bottom on October 20, but the speed of its decline lead him to change his forecast.

The dollar index , which weighs the greenback against a basket of other currencies, held above 76 points Friday. It has suffered major declines since mid-summer after the Federal Reserve signaled further quantitative easing in a bid to boost the economy.

The S&P 500 Index will likely see a "last drive up" and the positive move could reach a peak in December or January, he said.

- Watch the full interview with Bill McLaren above.