Investing.com — Financial institution of America mentioned in a word Friday that buyers ought to take into account promoting the US greenback throughout a possible bounce this October, pushed by historic seasonal patterns and present technical indicators.

Based on BofA, whereas there could also be an preliminary uptick within the greenback, the broader pattern suggests a bearish outlook for the foreign money.

The analysts level to a bearish triangle sample within the (DXY), which signifies potential declines to round 98.98 and presumably into the mid-96s.

Nonetheless, they anticipate a short lived “snapback” rally, just like earlier occurrences in December 2023, July 2023, and February 2023.

This rally, if it materializes, is predicted to be corrective and will check former help ranges now performing as resistance within the mid-102s.

“Until the every day chart kinds a technical backside,” BofA notes, “our bias is to promote an October election yr seasonal bounce in DXY for YE24 draw back.”

The word emphasizes that technical indicators and oscillators help a bearish stance on the greenback, suggesting that any positive factors in October needs to be seen as a chance to promote quite than a sign of long-term power.

The advice relies on BofA’s broader view of the FX market, together with their technical expectations for varied currencies.

As well as, BofA’s broader evaluation features a cautious stance on gold, advising in opposition to chasing it as a result of stretched positioning and momentum, whereas suggesting potential upside in silver.

For the euro, the outlook stays constructive, whereas the pound is predicted to face corrections regardless of a bullish pattern. The and different foreign money pairs are additionally positioned for actions that align with BofA’s bearish greenback outlook.