The U.S. Dollar fell against a basket of major currencies for a second session on Friday after confirming the previous session’s closing price reversal top chart pattern. The likely catalysts behind the selling pressure were declines in Treasury yields and a fresh round of profit-taking following a steep rally earlier in the week. The move didn’t do any serious damage to the index with some traders saying the move may be temporary.
On Friday, December U.S. Dollar Index futures settled at 94.047, down 0.193 or -0.20%.
For the week, the dollar index posted its largest percentage gain since late August, as investors looked to the Federal Reserve’s reduction of asset purchases in November and a possible rate hike late next year.
The chart pattern suggests the start of a 2 to 3 day correction, which would be a welcomed sight for longer-term bulls who would rather buy dips than chase rallies at current price levels.