Watching for a proper correction in the dollar index - BBH
Analysts at Brown Brothers Harriman explained, most broadly, the Dollar Index rose in four of last week's five sessions.
Key Quotes:
"It has risen seven of the past 10 sessions and 10 of the past 15. It has risen for three consecutive weeks, and in six of the past seven, and nine of the past 12 weeks. This could be a definition of an uptrend. Yet a yellow light is flashing, meaning that the market is likely to have a proper correction soon. The Slow Stochastics and MACDs are about to turn down.
What level would the Dollar Index have to break to suggest a correction is at hand?
The 102.50 area is notable. It corresponds to recent lows and a 38.2% retracement of the rally since the Fed's hike. A break of that area could signal potential toward 101.00-101.50."