Dollar May Erase Post-2014 Gains If Key Support Shatters: Chart

(Bloomberg) -- The greenback’s slump has taken it to the precipice of a technical cascade, as it slides toward key levels based around weekly and monthly moving averages. The Bloomberg Dollar Spot Index has retreated on the Federal Reserve’s dovish turn and President Donald Trump’s struggles with Congress. The weakness may come to be seen as part of a broader correction if the gauge closes July below 1,150 start, allowing for a deeper retracement to the 1,050 area that would erase the bulk of the spike that started June 2014.