USD Index: Under growing pressure to retest the lower end of its range for the year – Credit Suisse

USD is starting to come under pressure and economists at Credit Suisse see scope for a retest of key support from the range lows for the year at 100.82/78 in the US Dollar Index (DXY).

Move back above 103.57 needed to clear the way for strength back to the recent high and 200-DMA

DXY has quickly moved back below its 55-DMA and late June low and this sees downside pressure increase again to warn of a retest of key support from the lower end of the range for the year and February/April lows at 100.82/78.

A break below 100.82/78 would be seen to resolve the range for the year lower to warn of a fresh and potentially concerted bear phase with initially support seen at 100.00, then 99.50 and eventually what we would look to be better support at the 61.8% retracement of the 2021/2022 uptrend and 200-week average at 98.98/98.25. 

A move back above 103.57 is seen needed to clear the way for strength back to the recent high and 200-DMA, now at 104.60/70. Only above here though would be seen to rekindle thoughts of a potential basing story for a test of 105.88/106.13 – the March highs and 38.2% retracement of the 2022/2023 fall.