The US Dollar Index (DXY) met our 93.75 initial downside target yesterday (May 13th), which was discussed in our May 4th Keys To This Week report (access requires subscription), to capture a 2% decline in the index in just over a week.
During the same period the PowerShares DB US Dollar Bearish ETF (UDN) has risen by 2%.
From that report:
“Chart Patterns: US Dollar Index (DXY). NEAR TERM DOLLAR BEARISH. Chart 13 below points out that the April 24th breakdown in DXY, from 6 weeks of sideways indecision, indicates that at least a near term top is in place in the greenback at its recent highs and targets an initial 2% decline to 93.75 that will remain intact below the 50-day moving average at 97.35.”