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16 Dec 2015
US dollar has the better hand in 2016 - BofAML
FXStreet (Delhi) – Research Team at BofAML, suggests that despite 2015 appearing to end in a range bound trend, their 2016 view is DXY higher and euro lower.
Key Quotes
“Our technical forecast has become dependent on the ranges breaking in the direction of the existing trend. This creates a target for DXY of 108.50 and euro to 1.00 and .9600. Due to the November trend line breaks, we maintain our view of DXY higher and euro lower and will have added conviction when the ranges break.
DXY notes: The DXY continues to challenge and break resistance levels while holding support. Momentum as measured by RSI remains in a bullish range. The DXY is approaching a pocket of support (96.25 – 95.72). It has resistance at the psychological resistance level of 100-100.51.
EUR/USD notes: The euro faces a pocket of resistance due to a Fibonacci retracement at 1.1110 and a downward sloping moving average and trend line at 1.1210.”
Key Quotes
“Our technical forecast has become dependent on the ranges breaking in the direction of the existing trend. This creates a target for DXY of 108.50 and euro to 1.00 and .9600. Due to the November trend line breaks, we maintain our view of DXY higher and euro lower and will have added conviction when the ranges break.
DXY notes: The DXY continues to challenge and break resistance levels while holding support. Momentum as measured by RSI remains in a bullish range. The DXY is approaching a pocket of support (96.25 – 95.72). It has resistance at the psychological resistance level of 100-100.51.
EUR/USD notes: The euro faces a pocket of resistance due to a Fibonacci retracement at 1.1110 and a downward sloping moving average and trend line at 1.1210.”