This according to an analysis by Bespoke Investment Group
by Joseph Adinolfi
Market Watch
If technical indicators are to be trusted, then the dollar looks to be on the verge of a prolonged downturn, according to an analysis by Bespoke Investment Group.
After tracing a “double top,” the Bloomberg dollar index—Bespoke’s preferred gauge of the greenback’s value—has broken down out of a so-called wedged pattern while also approaching the 38.2% retracement level of its 2014-2016 rally.
Among chart watchers, a double-top pattern usually signals the end of a longer-term bullish trend and is market by two rising peaks in a given security, while a wedge pattern can indicate a continuing trend. In this case, it represents the extension of recent weakness in the buck.