USD: Bullish signs keep appearing regarding the dollar (Merrill Lynch)

Merrill Lynch believes the dollar will likely strengthen on the forex by the end of the year and offers targets for a few pairs that are worth watching.

"We are observing several technical signals on different time spans that are in favour of a rise of the USD on the forex in Q4 2017.

It is not yet clear whether this is a rebound in Q4 or the beginning of a stronger uptrend.

However, we believe that risk/benefit still favours the purchase of USD, especially if USD-friendly items materialise by the end of the year. (Fed rate hike and positive advances in tax reforms, for example).

We are still anticipating the EUR/USD at 1.15, and we are now strengthening the possibility of finding the 1.1320 level. The AUD/USD is correcting itself to the breakpoint of its triangle down from 0.76. Technical analysis further suggests an increase of the USD/JPY to 115, especially if the pair breaks the trend line more decisively at 112.66."