While recent price action has left a couple of bearish signals on the chart, it’s unlikely the Dollar Index will break its long-term uptrend at the first attempt, says Andy Dodd, Head of Technical Research at Louis Capital Markets.

Dodd says a break below 99.233 would confirm a head-and-shoulders top pattern on the daily chart. However, he thinks the strong uptrend (which dates back to the low of 2014) and the 200-day moving average will provide strong support and he would be surprised to see it fail at the first test (see Chart).

See Chart.

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