US dollar on the back-foot, technically bearish – BBH

By FXStreet Analysts at Brtwn Brothers Harriman explained that the US dollar had a difficult week.

Key Quotes:

“The price action after the ECB meeting had undermined the technical tone, and the dollar took another leg down after the FOMC moved closer to the market expectation by reducing the number of rate hikes the median official thinks will be appropriate this year from four to two.

The US Dollar Index fell for the third consecutive week and the fifth week of the past seven. The minor gains ahead of the weekend failed to improve the technical tone. Technical indicators warn of additional losses. However, the market is stretched. It posted two closes to finish the week below the lower Bollinger Band.

The Dollar Index reached a low near 95.50 in the immediate response to the FOMC statement and new dot plot. This now denotes initial resistance. A move above 96.00-96.20 is needed to suggest a bottom is in place. On the downside the 94.00 and the October 2015 low near 93.80 the next downside targets.”
For more information, read our latest forex news. …read more

Source:: FX Street