USD Index: Only a break below 109.30/00 would mean a deeper downtrend – SocGen

US Dollar Index (DXY) adds to Tuesday’s retracement and returns to the low-111.00s. Only a dip under 109.30/00 would open up room for further losses, economists at Société Générale report.

July peak at 109.30/109.00 is crucial support

“Daily RSI is still defending the lower end of its bullish territory denoting prevalence of upward momentum.”

“July peak at 109.30/109.00 is a crucial support near term; only a break below would mean a deeper downtrend.”

“A rebound is not ruled out towards 112.80 and October high of 113.50/113.90. Reclaiming this is essential to affirm next leg of uptrend.”