DXY: A weak close through November will seal a long-term reversal signal on the charts – Scotiabank
|USD steadies after sharp CPI-driven losses. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes Greenback’s outlook.
More losses seem likely in the near-to-medium term
The sharp slide in the USD overall on Tuesday adds to the growing body of evidence from price action that the H2 USD rally is reversing. A good chunk of that gain has already been taken back but more losses seem likely to me in the near-to-medium term.
Fundamentals are less favourable for the USD and short, medium and longer-term price signals are leaning USD-bearish now.
A weak close for the DXY through November will seal a long-term (monthly) reversal signal on the charts.
Markets have been in ‘buy USD dip’ mode since mid-year; that will transition to ‘sell USD rallies’ from here.
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.