Scope for a tactical bounce in DXY into year-end - BofA

Market news

9 December 2020

Scope for a tactical bounce in DXY into year-end - BofA

eFXdata reports that Bank of America Global Research likes to sell the USD Index (DXY).

"We think the US dollar index (DXY) is vulnerable to another technical breakdown and decline in 1H2021. We see potential for a double top pattern to form, present a bearish wave count that favors a retest of the early 2017 lows. The now declining 200wk SMA supports our view," BofA notes.

"Tactically, we can't rule out a bounce into yearend. A rounded base may form at trend line support similar to 2017, 2014, 2011 and 2008," BofA adds.

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