USD: Trapped in a range – BBH

The Dollar Index has been in a range of 89.00 to 91.00 for two months and is a little below the mid-point, points out the research team at BBH. 

Key Quotes

“The protracted sideways movement neuters the technical indicators.  There does seem to be an underlying bid that was not there at the start of the year.  Over the past 11 weeks, the Dollar Index has fallen in only three, including last week's 0.35% decline.  That net-net it has not gone anywhere is a worrisome sign.  It does not appear to be a function of the bulls buying from the bears and accumulating a long position.  It seems to be more the case that some shorts were reduced, but that the bears remain content and the bulls are not prepared to make a strong stand.”