Analysts at Commerzbank, believe that a top is in the process of being formed in the US Dollar Index, despite last week bounce.
Key Quotes:
“The US Dollar Index advanced in five Elliott Waves from its February 2018 low at 88.25 and was rejected by the 97.57/82 area (July 2016 high and 61.8% Fib.). Over the past six months it twice bounced off the 55 month moving average, now at 95.34, but this is likely to be slipped through in the months to come.”
“The weekly RSI is still showing negative divergence which points to a possible bearish reversal.”
“Downside targets would then be the 94.20/93.71 zone (38.2% Fib. 55 week ma, July & September ’18 lows) and the 93.19/92.98 area (June ’18 low and 50% retracement) and perhaps 92.62/24 (Aug ’15, Nov ’17 and May ’18 lows) and the 91.92 May 2016 trough.”
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