The US Dollar Index not too long ago confronted stiff resistance at 114.80. This take a look at has stalled the uptrend leading to a sideways consolidation. DXY might take a look at 113.90 if manages to carry the 109/108.70 assist, economists at Société Générale report.
Danger of short-term downtrend on a break below 109/108.70
“The ascending development line since February at 109/108.70 which can be the 23.6% retracement from 2021 is anticipated to be first essential assist. Defending this may result in a rebound in direction of latest decrease excessive at 113.90. Overcoming it might imply subsequent leg of uptrend in direction of 117 and 2001 excessive close to 121/122.”
“If DXY breaks and establishes beneath the assist close to 109/108.70, there’s a danger of a short-term downtrend. In such a situation, subsequent potential aims may very well be at 107.60 and Could excessive of 105.”