The US dollar strengthened after the Fed decision, but the internal data in the GDP report cast some doubt about the strength of the US economy and allowed profit taking on dollar longs.
So what’s next for the dollar? Citi sees that the next dollar strength around the corner:
Here is their view, courtesy of eFXnews:
CitiFX Technicals remain of the view that USD strength into year-end remains likely with a possible move on the DXY Index to the 88-89 area.
“This, though, should only be the start of the next leg higher as the dynamics for further USD strength through 2016 remain intact,” Citi argues.
“We would expect the next move in USD to be higher with resistance in the DXY Index around the 88.70-89.62 area ( the highs from 2009 and 2010), a level we could be reaching by the end of the year,” Citi projects.
“A further break above that area would be a clear indication to us that the next move higher in USD has begun which, in our view, should take it to 100+ through 2016,” Citi adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
Share
