USD Index: Next potential supports located at 2020 peak of 103 and 101.90/101.30 – SocGen

US Dollar Index (DXY) has now lost 8.5% from the top in October and is below the August low of 104.60. Economists at Société Générale highlight the next targets on the downside.

An initial bounce is on the cards

“Daily MACD is within deep negative territory pointing towards an overstretched move. An initial bounce is not ruled out, however, the recent pivot high at 107.20/108.00 could provide resistance near term.”

“Next potential supports are located at 2020 peak of 103 and 101.90/101.30, the 50% retracement from 2021.”