USD Index to rebound towards 108 if defends 103 – SocGen

The US Dollar Index (DXY) stays quiet slightly above 104.00. Holding above 103 is crucial to see a gradual bounce, economists at Société Générale report.

Defense of 103 could spur a bounce

“DXY is drifting towards 2020 peak of 103.00. This could be a potential support. Defending it can lead to a gradual bounce however recent pivot high near 108 is expected to be a short-term resistance. Failure to cross this can result in persistence of downtrend.”  

“Failure to hold 103 would mean a much deeper down move. In such a scenario, the index could dip towards 101.90/101.30, the 50% retracement from 2021 and 100.”