USD index: Long-term target intact

Despite the FOMC’s comments a few weeks ago which spooked the FX markets, Andy Dodd, Head of Technical Research at Louis Capital Markets, believes that longer-term not much has really changed for the US dollar.

Dodd says the dollar index “remains in a nice uptrend which is just below the 95.481 support” and he advises buying pullbacks towards that trend. “The move lower hasn’t quite made it as far as that level as yet and there is still the potential for a further move lower,” but Dodd says he will still be a buyer on such a pullback. His long-term target of 108 remains intact.

See chart.

 

See full report, including an analysis of the following equity, currency and commodity markets:

S&P 500
Russell 2000
EURO STOXX 50
DAX
FTSE
Crude
Gold
Dollar Index
EURUSD
USDJPY
GBPUSD
EURO STOXX Banks
Banco Santander
BNP Paribas
Credit Agricole
EURO STOXX Oil & Gas
BP
BG
EURO STOXX Automobiles & Parts
EURO STOXX Insurance