USD: Trading with a heavy tone – BBH

The Dollar Index snapped a four-week advance with a 0.8% decline and is near the bottom of this month's trading range seen near 89.40, points out Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“The upper end of the range near-term range is  around 90.40.  The broad sideways movement neutralizes the technical indicators we use.  The tone is heavy, but the bears have to break through 88.40 to signal a new leg down for the greenback.”

“The technical indicators do not appear to be generating a robust signal in the euro either, as its range-affair continues.  The euro has moved broadly sideways after making moving higher in the first few weeks of the year.  The range is defined by $1.2200-$1.2240 on the downside and $1.2400-$1.2440 on the upside.”