US Dollar Index to reach the 97.00 level on removal of 96.50 – SocGen

The US Dollar Index (DXY) has rebounded after dipping towards interim support of 94.60/94.50 representing the peak of October and has reached its highest level in more than two weeks at 96.27. Economists at Société Générale note that a break above 96.50 would open up the 97.00 level and perhaps 97.45.

Failure to defend 95.25 can lead to continuation of down move

“DXY has crossed above a descending trend line which denotes possibility of further upside towards the peak formed earlier this month near 96.50. If this hurdle is overcome, the index can extend its uptrend towards 97.00 and perhaps even towards next projections at 97.45.”

“Failure to defend 95.25, the 61.8% retracement of the bounce can lead to continuation of down move.”

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