The dollar index (DXY), which tracks the value of the greenback against majors, seems to have carved out a medium-term top ahead of the January 2016 high of 103.82 and potential for the notable bearish trend would increase with a break below key support at 96.20, according to Goldman Sachs’ technical analysts.
Key quotes
- Elliott Wave and momentum analysis point to a medium-term top.
- The first sign of downside potential would come on a break below 96.20 and the confirmation would come from a break of the lower end of the two-year-long channel, currently at 95.00.
- Multi-month downside targets are seen to back to the 88.46/88.25.
At press time, DXY is trading at 100.15, having hit a high of 103.00 last month.
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