DXY: technically, downtrend is not over - BBH
|Analysts at Brown Brothers Harriman explained that the Dollar Index's price action has been streaky this year.
Key Quotes:
"Leave aside the first week of the New Year, when the Dollar Index was practically flat. It fell for four weeks, then rose for four weeks, and now just completed its third consecutive weekly decline."
"The technical indicators warn that the downdraft is not over. Key support is seen in the 99.20-99.45 area. It corresponds to the lows of the past four months."
"It is also where some see a large head and shoulders top pattern, which if convincingly violated could suggest a measuring objective near 94.50. Before getting there, the Dollar Index rally, since last May's lows, would be half given back near 98.40 and would retrace 61.8% of its gains if it fell to 97.15. Nearby resistance is seen at 100.00."
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