USD Index: Downtrend persists, may not take much encouragement to resume below 102 – Scotiabank

USD trades broadly lower. The US Dollar Index (DXY) could accelerate its decline on a break under the 102 mark, economists at Scotiabank report.

Resistance aligns at 103.00/10

“While the USD is better offered, investors may not want to lean too hard on the currency ahead of the US CPI report tomorrow. The report could bring mixed news – clear progress in taming headline inflation but signs of stickier core inflation which may provide the USD some anchoring in the short run.”

“Technically, the sell-off in the DXY looks to have paused after a week or so of modest gains. The downtrend persists from a broader point of view, however, and may not take much encouragement to resume (below 102 on the index).” 

“Resistance for the DXY is 103.00/10.”