USD Index: After A Bounce, A Deeper Wave ‘C’ Could Extend This Summer – BofAML

The US dollar had a mostly positive week last week, but against some currencies, it is still struggling. What about the technicals on the US dollar index?

Here is their view, courtesy of eFXnews:

Bank of America Merrill Lynch FX Technical Strategy Research notes that the weekly chart of the DXY is most oversold according to RSI, while the BBDXY charts show a daily TD Sequential buy signal at weekly trend line support and this supports a bounce.

“The DXY declined below 97.50, which we said was a risk, exceeds the minimum requirement for a corrective wave c to end.

However we remain aware a deeper wave c could extend as low as 94.85 while market profile targets 95.50,” BofAML projects.

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