The US Dollar is having a good year and the summer holiday is a time to reflect on it. What’s next?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch discusses the USD technical outlook and flags a recent bullish golden cross pattern on the USD index (DXY) which suggests room for further USD gains through September.
“Earlier this summer we speculated a head and shoulders bottom was forming on the US dollar indices. These bullish patterns are now confirmed and support a continuation of the USD uptrend since the triangle base in April 2018. The June 7th golden cross suggests a DXY rally could occur through September,†BofAML notes.
“Golden cross still bullish for the DXY On June 7th 2018 the 50d SMA crossed above the 200d SMA for the DXY index, suggesting USD rallies. Since 1974, this signal has occurred 30 times and the DXY is higher 35-80 days later 67-73% of the time,†BofAML adds.
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