The dollar index (DXY) depreciated for the third day, by 0.5% to 109.62, closing below 110.00 for the first time since Oct 26. As DBS Bank economists point out, the DXY index presents a possible shoulder-head-shoulder formation.
This week could be decisive for the upward trend of the dollar
“Investors are betting that the US mid-term elections will hurt the dollar and bolster stocks if Republicans wrest control of one or two houses of Congress from Democrats.”
“To extend your fall, DXY index needs to break below 109.50, the neckline of a possible head-shoulder-shoulder pattern“.
“USD bears will be encouraged if support is breached at 108.90its 100-day moving average.
“This week could be critical for the USD uptrend“.
Source: Fx Street