TALKING TECHNICALS: Don’t bet on bottom dollar
It may be time to temper bearishness on the greenback
The weakness of the US dollar over the past year has made headlines recently. Through 2017 the dollar lost 12% of its value as measured by the US dollar index, and that trend has continued into 2018. The US dollar index measures the value of the greenback against a basket of developed-market currencies. Six currency pairs make up the index: the dollar-euro pair makes up the largest weighting; and the pound sterling, Swedish krona, Canadian dollar, Japanese yen and Swiss franc. On a very long-term basis the US dollar has strengthened against most of these counterparts, but it does have major swings from time to time, as seen in the past year. Technically, the index is at an interesting point. The level at 88 represents an important support zone for the index. That zone is created by the upward trend that joins the lows from 2011 and 2014. It is also a lateral level of support that represents peaks in 2009 and 2010.
So far this year, it appears there has been some acknowledgemen...
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