Bank of America Global Research discusses the USD technical outlook and maintains a core bullish bias into 2022.
"We hold a long USD bias into 2022 primarily due to the double bottom on the BBDXY that targets 1200/1205 and an uptrend that shows no top yet. Euro is a 32% index weight so downside risk remains possible," BofA notes.
"USD/CHF formed a diamond bottom pattern and should rally in 1Q22. AUD/$ is on head and shoulders top watch. Gold’s bullish breakout may limit USD upside so on GBP/$ we monitor support at 1.32-1.34," BofA adds.