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.
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