FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that while anticipating a yawning divergence of monetary policy between the world's largest central banks, market participants continued to drive the dollar higher over the past week. Key Quotes: "In fact, the greenback appreciated against all the major and emerging market currencies except the Malaysian ringgit and South Korean won. Next week is one of the most eventful weeks of the year, and the speculative community has amassed a very large long dollar position. It begs the question of whether the ECB cannot help but disappoint market expectations and spur a serious correction to the dollar's rally, whose most recent leg higher began in the middle of October." "The euro is holding below its own trendline, which is found near $1.0650 now and $1.0550 at the end of next week. The technical indicators are similar to the Dollar Index, with only the MACDs suggesting a correction could be imminent. A short squeeze that lifts the euro through the $1.0660 area could carry it up toward $1.0750-$1.0800. In some ways, the downside speaks for itself. Although we recognized the $1.0525-$1.0550 area as the downside target ahead of the March low near $1.0460, we do not think that area is particularly significant. Parity beckons." For more information, read our latest forex news.