Monday, November 9, 2015

Long dollars re-established; buy on dips - BBH

FXStreet (Guatemala) - Analysts at Brown Brothers Harriman noted that the Dollar Index has rallied nearly 6% since the middle of October and is within 1% of its March high (~100.40).

Key Quotes:

"Recall that it rallied from around the middle of 2014 through March of this year. It moved lower from March through August but held the minimum retracement (38.2%) on the pullback."

"The subsequent price action looked to us to be corrective in nature and not the end of the bull run that so many investors and observers had heralded.

Short-term technicals may be stretched, however. Initial support is seen near 98.00, but given the prospects for ECB easing a fortnight before the Fed hikes, dips in the Dollar Index will likely be bought as long dollar positions previously reduced are re-established."
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