Dollar index (USDX) at risk of setting in place a double top at 101.32

Much earlier today we noted how the dollar index had matched the high point seen yesterday during the Asian session. That was at 101.32. Well, since then it has traded as low as 100.60 following the weaker than expected US CPI report. 

However, it has since rebounded from that low, as high as 100.91. Now the thing is; the prior interim now did not surpass the low we saw last week, when it based at 100.55. The low seen since then was set the other day, at 100.59.

So, if the index does break below 100.55 from now on it will confirm an interim double top in place on the daily charts, at 101.32. Of course this is not the case yet and even if it does become so, that 101.32 level may yet become a target to aim at sometime in the future. 

As far as the US economic side of the equation is concerned there is no reason to buy the US currency right now, but we also have to factor in the situation in the Middle East and how that evolves. This might further support the dollar in the days ahead, but unless it does the dollar could be at risk of more downside this week. The dollar index is right now at 100.87