US dollar looks ripe for a bounce – IG analyst

Omkar Godbole FXStreet Contributor

With market positioning wildly short and technicals look a touch oversold, the US dollar is looking ripe for a bounce, Kyle Rodda, market analyst for IG Australia, tweeted. Rodda, however, isn't sure whether the greenback would see an immediate bounce and how long it will last. "Perhaps it'll come from a bit of January repositioning," Rodda said.

The dollar index, which tracks the value of the greenback, is currently seen at 89.93, having hit a 32-month low of 89.73 on Thursday. The currency has declined by 6.8% this year and is widely expected to fall by at least 5% in 2021.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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