FXStreet (Edinburgh) – Analysts at JP Morgan suggested that a continuation of the consolidative pattern in the US Dollar Index is quite likely in the short term.
Key Quotes
“While the medium term upside risks are intact, the corrections for the USD indices below the March highs continue to play out”.
“Given the lack of a broad-based USD rally, additional consolidation seems likely.
“Still, it is important to note that both the DXY and JPM USD Index effectively held important support levels at the May lows”.
“In turn, we sense these levels should maintain the low-end of a potential consolidation phase while maintaining the risk for a return to the underlying uptrend”.
“For the DXY, the 93.25/92.15 zone will continue to act as critical support as it represents the January breakout area, the February reaction low and the 38.2% retracement from the 2014 low”.
“Still, a break back above the 97.75/80 area (May high) is necessary to suggest the upside risks are back on track for a retest, if not break of the 100.39 March high”.
(Market News Provided by FXstreet)