USD Index could revisit January peak near 105.60 on a break past 103.70/104.10 – SocGen

US Dollar maintains bid tone. Economists at Société Générale expect the USD Index (DXY) to extend the rebound and see potential to reach the January peak near 105.60.

Defending 101.40 is essential for persistence in up move

“The Dollar Index approached the earlier highlighted potential support zone near 100.60/100.00 representing peak of 2015. A sharp rebound has taken shape resulting in formation of a weekly hammer. This denotes downward momentum is gradually receding.” 

“The index is expected to inch higher gradually towards 50-DMA at 103.70/104.10. Overcoming this could mean a revisit of January peak near 105.60.”

“Defending 101.40, the 76.4% retracement of the rebound is essential for persistence in up move.”