Bear Trap Sprung

TECHNICAL ANALYSIS

Max McKegg looks at the longevity of the US dollar reversal.

In the Sept 11 edition of FX Week we warned that "technical analysis of the dollar’s prospects suggests a sharp reversal is just around the corner" and that this was "an ideal environment for a bear trap". We proposed that the dollar/Swiss franc chart gave the best illustration of the imminent dollar reversal and repeated that our long-held target for the top was 1.7990 francs to the dollar. Given the clear correlation between doll