Analysts at Brown Brothers Harriman noted that the dollar's technical tone has deteriorated.
"The failure of the Fed to signal an increased pace of normalization and the prospects of other central banks raising rates spurred dollar losses, which deteriorated its technical outlook.
The Dollar Index has been sold through the 61.8% retracement (~100.40) of the rally since February 2 low near 99.25.
If the 100-level is breached now, a return to the early February low, looks more likely.
That 99.25 area is very important from a technical perspective. It corresponds to a 38.2% retracement of the rally since last May's low and it is also a neckline of the old head and shoulders pattern.
The measuring objective of the head and shoulders pattern is near 94.75, which is just above the 61.8% retracement of the rally since last May's low.
The five-day moving average is below the 20-day average for the first time in a month.
Technical indicators are also aligned favoring the downside."
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