The market may take out 92.6-92.5 on the dollar index on the way down, Jai Bala of cashthechaos.com said in an interview with CNBC-TV18.

Bala further added that if it goes below that level, there could be a fresh low which could be the final leg of the move leading to a major reversal for dollar index. However, he believes that a failure to break below that may lead to short term risk-off potential. In general, a strong dollar leads to money moving out out risk assets like emerging market equities, into the dollar.

According to Bala, the move in precious metals depends on dollar weakness. Gold is heading for record highs and that could come under risk if dollar doesn’t break down, he said.