USD Index: Break of 105.40/105.80 is essential for affirming a larger uptrend – SocGen

The US Dollar Index (DXY) is approaching the hurdle from January/March highs of 105.40/105.80. Economists at Société Générale analyze DXY’s technical outlook.

Recent pivot low near 102.90 should be an important support

DXY formed an important trough near 99.50 in July and quickly re-entered within the previous multi-month range; this has resulted in a rebound phase. The index has recently approached the peaks of last January/March near 105.40/105.80, which is also the upper limit of a steeper ascending channel. An initial pullback can’t be ruled out, however, the recent pivot low near 102.90 should be an important support.  

It would be interesting to see if the index can overcome the resistance zone at 105.40/105.80. This break is essential for affirming a larger uptrend.