After a strong run over the past several weeks, the dollar's technical indicators had been stretched, and some bearish divergences appeared, suggests the research team at BBH.
“The two-year interest rate differential between the US and Germany peaked on May 21, suggesting that some of the fuel of the dollar's rally was spent. We have also noted that in the futures market, speculators added to their gross longs for four of the past five weeks. The euro bulls made their stand ahead of $1.1500. Our reading of the technical condition suggested potential into the $1.1750-1.1800 area.”
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 securities. 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 Forex 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.