The US dollar has not exactly continued its winning streak in recent weeks, and has had mixed results. Is it time for a renewal of the uptrend?
The team at Bank of America Merrill Lynch thinks so. Here is there rationale, entry points and targets:
Here is their view, courtesy of eFXnews:
For the past 3 weeks the USD Index has been caught in a well defined contracting range, notes Bank of America Merrill Lynch.
“Now that range is drawing to a close and the larger bull trend is about resume.As such we recommend buying the USD Index at 94.10 for resumption of the advance. A break of Triangle resistance (now 94.91) confirms a return to trend,” BofA projects.
“Upside targets are seen to 97.01 and potentially beyond. Pullbacks should not break the 34d avg (now 93.58), while a move below the Feb-03 low at 93.25 invalidates the bullish setup,” BofA adds.
In line with this view, BofA recommends buying the USD Index on a dip into 94.10, with a stop at 93.20, and a target at 97.01.
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