• Wed
  • Oct 1, 2014
  • Updated: 9:55am
Chart Book
PUBLISHED : Wednesday, 27 August, 2014, 1:23am
UPDATED : Wednesday, 27 August, 2014, 1:23am

Chart of the day: Greenback gains

BIO

Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.
 

Bursting to levels not seen in almost a year, the US dollar index is on a firm upward track. Regardless of whether it is driven by weakness in the euro, which makes up about half the weighting of the index, or because most major and emerging-market currencies have lost value against the greenback, the index has comfortably hit its first measured target at 82.446. The rally should continue to the second target at 83.394. It is worth noting that the initial break above the top of the triangle started at 81, the mean regression of moves since 2008, which means that at that point, the dollar was neither cheap nor expensive against its basket.

Nicole Elliott is a technical analyst

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