Dollar's downside correction is not over - BBH

Analysts at Brown Brothers Harriman explained that the dollar's downside correction to its two-month advance was not over.  

Key Quotes:

"It slipped further against the euro, yen, and sterling, while it strengthened against the dollar-bloc currencies. The outlook remains mixed for the week ahead, making it difficult to discuss the dollar in general.   

The Dollar Index is heavily weighted toward the complex of European currencies. Two of the US main trading partners, China and Mexico, are not even included. Yet it frequently is used as a broad gauge of the greenback. The recent pullback saw it push through the 38.2% retracement of the rally (93.55) that began from the year's low set on September 8 (~91.00). 

The Dollar Index finished the week a marginally above the 100-day moving average (~93.65). The lower Bollinger Band is found near 93.50. The technical indicators on the daily bar charts still warn of downside risks, and the five-day moving average has fallen below the 20-day for the first time since late September. The 50% retracement is seen near 93.10. The weekly technical studies lend support to our view that the pullback is corrective in nature."