USD Index: Recent strength seen as corrective whilst below 103.47/103.57 – Credit Suisse

The US Dollar Index (DXY) rebound stays seen as corrective whilst below its 200-Day Moving Average (DMA), economists at Credit Suisse report.

Weekly close above 103.57 would turn the core trend neutral again

We continue to view the recent strength as temporary and corrective whilst below 200-DMA and July high at 103.47/103.57.

Below near-term support at 101.74 is needed to see the immediate risk turn lower again for a fall back to 100.55, then the 99.58/99.50 current cycle lows. Beneath here can see a test of support at the 61.8% retracement of the 2021/2022 bull trend and 200-week average at 98.98/98.30.

A weekly close above 103.57 though would be seen to turn the core trend neutral again, with resistance then seen next at 104.70 ahead of the 38.2% retracement of the 2022/2023 downtrend and YTD high from March, seen at 105.38 and 105.88 respectively.