This according to an analysis by Bespoke Investment Group
by Joseph Adinolfi
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.