DXY could face extra losses – BBH

According to analysts at BBH, the greenback – tracked by the US Dollar Index – risks further downside in the near term.

Key Quotes

“The Dollar Index snapped a two-week advance and shed about 0.65% last week”.

“Further losses seem likely in the coming days, as the technical condition deteriorated”.

“Initial support is seen in the 99.80-100.00 area, and a break, which seems probable, given the position of the technical indicators, would target the 99.00 area, where the recent leg up began and housed the 200-day moving average”.

“The five-day moving average is looks poised to fall back below the 20-day moving average next week. A move above the downtrend line connecting the January and March highs, and approached last week would lift the tone. It is found near 101.40 at the start of the new week, falling about two ticks a day”.