Jan. 31 (Bloomberg) -- The Dollar Index dropped to a six-week low and may extend its fall beyond a key technical level, according to BNP Paribas SA.
The gauge touched 79.13, breaking through a 79.2 support level, as it fell to its lowest level since Dec. 20 and may decline to 77 in the second quarter, Vassili Serebriakov, a foreign-exchange strategist in New York at BNP Paribas, wrote in an e-mail.
“The DXY index is threatening trend-line support at 79.2,” Serebriakov wrote in a note to clients. “From a technical perspective, a clear break of this level would open further U.S. dollar downside.”
The Dollar Index, with Intercontinental Exchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, declined for the third consecutive day, falling 0.1 percent to 79.19 at 11:28 a.m. in New York.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Support refers to an area on a graph where analysts predict buy orders may be clustered.
To contact the reporter on this story: Taylor Tepper in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com