Dollar's technical tone is improving - BBH
|Analysts at Brown Brothers Harriman explained that the dollar's technical tone is improving.
Key Quotes:
"Looking at the Dollar Index, there have been three favourable technical developments. "
"First, the spike low recorded in the middle of last week; the brought the Dollar Index to its lowest level in the US election last November, was not confirmed by the technical indicators, leaving a bullish divergence."
"Second, the reason it was not confirmed was that the dollar reversed higher (perhaps a hammer candlestick). "
"Third, the five-day moving average cross above the 20-day average for the first time in a month. The immediate cap is in the 97.70-97.80 area."
"Overcoming it would target 98.50, the last significant hurdle ahead of 100. A break of 96.80 on the downside warns that more work needs to be done. "
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.