Dollar Index Support Anchored to Volume Node

The U.S. dollar index has seen a significant correction over the past few weeks, with roughly half of its speculative bullishness lost. However, this decline has not been driven by round numbers, but rather by volume.

A high-volume node in the dollar index's volume profile indicates support at a price area where both buyers and sellers have accepted as fair. Market analyst Matt Simpson suggests that this level is anchored to an established price congestion zone, which has repeatedly absorbed supply.

The August volume point of control serves as a reference level for the current corrective move in the euro. Simpson believes that support has been found and sees potential for a bounce over the near term, citing a higher low on the daily chart.