SINGAPORE: The dollar index faces a strong resistance at 95.533 and may continue to hover below this level or retest support at 93.776.

Resistance and support are identified respectively as the 138.2 percent and the 123.6 percent Fibonacci projection levels of an upward wave 3, which started at the May 9, 2014 low of 78.906.

Resistance has triggered a correction which may extend to 92.694, the 114.6 percent level, as support at 93.776 does not seem to hold.

A break above 95.533 will open the way towards the next resistance at 96.953, the 150 percent level.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.