Chart of the day: Dollar danger zone

US President Donald Trump boasted about his economic achievements, but here he is keeping quiet. From the day he started work, the US Dollar Index has lost 15 per cent of its value. At the end of last year, it settled (on a monthly basis) just under the 92.65 horizontal support area that had limited the downside for the past three years. Being a time when markets are thin, we watched and waited for confirmation of an important long-term break down. January certainly gave us that with a sudden slump, a large bearish candle, and a close below the bottom of a broadening top formation. We maintain our long-term measured target at 82, roughly the height of the irregular topping pattern.

Nicole Elliott is a technical analyst