US dollar technically deteriorating - BBH
|Analysts at Brown Brothers Harriman noted that the dollar's technical tone has deteriorated.
Key Quotes:
"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."
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.