USD poised for further gains – BBH

In view of analysts at BBH, the greenback could extend its recent upside momentum at the beginning of the week.

Key Quotes

“The Dollar Index rallied from May 3 to May 30. It then fell, and sharply after the jobs disappointment”.

“Through June 9, it retraced 61.8% of May's rally. The gains in the final two sessions of last week allowed the Dollar Index to recoup 38.2% of the recent leg lower and brought it back to its 50 -day moving average (~94.45). The 50% and 61.8% retracements are found at 94.70 and 95.00 respectively. The 20-day moving average is found near 94.95”.

“The strong close before the weekend, the constructive RSI, with the MACDs about to cross higher favor follow through buying at the start of the week”.