Chart of the day: US dollar eyes watershed move
The US dollar index is precariously poised at exactly the midpoint - 80 - of the broad trading range that has dominated since the beginning of 2008. Trench warfare is taking place between investors who favour the greenback over all comers and those who need euros, a currency which makes up half the weighting of the index. The technical pattern of a triangle consolidation with a series of descending high peaks hints at an eventual break below the watershed support level at 78.5. If it does, expect a further slide to the bottom of the triangle and an initial target of 75.
Nicole Elliott has worked as a technical analyst for some of the world's biggest investment banks in a 32-year career