Retaining a favorable outlook for the Dollar Index - BBH

Analysts at Brown Brothers Harriman explained that although the Dollar Index rallied in response to the ECB meeting on December 8, it had stalled in front of 102, an area which had stymied it last year as well.  

Key Quotes:

"However, with the Fed's help it blew past the cap and recorded a high a little above 103.50.  

One of the considerations that give pause from a technical point of view is that the RSI, MACDs, and Slow Stochastics did not confirm the new high in price, and the fast Stochastics and RSI turned down before the weekend.  

Initial support is seen near 102.50 and then 102.  

However, in anything but the short-term, we retain a favorable outlook for the Dollar Index.  We anticipate a move to 105 early in the New Year.  If it has been in a 90-100 range last year and most of this year, the breakout would suggest a 110 objective."