Monday, October 5, 2015

USD: Dollar bulls on the back foot – BBH

FXStreet (Delhi) – Research Team at BBH, note that the unexpectedly poor September US jobs data weakened the greenback's technical tone, as questions about the underlying strength of the world's largest economy, and the implications for the Fed's take-off, intensified.

Key Quotes

“The dollar's recovery after initially selling off on the data surprise mitigated some the technical damage that had been inflicted earlier. The Dollar Index held above the 61.8% retracement objective of the rally from the September 18 lows, which is found near 95.10.”

“The trend line connecting the August 24 and September 18 low came in near 94.75 (corresponds to the lower Bollinger Band) before the weekend (and almost 95.20 at the end of next week). A break of that trendline could spur a move toward the critical 94.00 area.”

“The RSI is pointing lower, and the MACDs are poised to turn lower. On the upside, a move back above 96.00 would lift the tone while the 96.50-96.70 area has to be retaken to put the bulls back in control.”
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