Charts: Last Chance to Ride This Dollar Rally
The recent dollar rebound is becoming an "overcrowded trade," but there is a "final oomph to come," Robin Griffiths, technical strategist from Cazenove Capital, told CNBC Monday.
"It's one of the few things that's going up and when there is a good trade around people tend to descend on it and push it a little bit too far," Griffiths said when taking a technical look at the dollar index.
The dollar index, which measures the dollar against a basket of currencies including the euro and yen, was slightly lower in early Monday morning trading, near 81 points.
"It's going to become an overcrowded trade and we're going to shoot through the 82.5 (point) level. 86 looks highly probable, it's just possible that 90 is on," he said.
"I personally wouldn't wait for 90 because I think it would be the wrong price to get," he added.
The long-term trend for the dollar is negative and the current rally doesn't have much further to run, Griffiths said.
"This is a six-month rally that's already three-to-four months old, but has got the final oomph to come," he said.
When the dollar rally ends, investors could look at selling the currency against the Canadian dollar, according to Griffiths.
- Watch the video above to see the full interview with Robin Griffiths.
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