US Dollar Index to trend higher towards next projections at 109/111 – SocGen

The US Dollar Index stays relatively quiet near 104.00. In the view of economists at Société Générale the steady uptrend is in force, therefore, DXY is set to clib as high as 111.

Only a break under 101 would signal a risk of a deeper downtrend

“We expect the index to head higher gradually towards next projections at 109 and the upper band of the multiyear channel near 111/112.”

“Shorter-term, we cannot rule out a phase of consolidation roughly within limits of 101.30/101 and 106. Eventually, a move beyond 106 would lead to the next leg of uptrend.” 

“Only if the recent pivot low near 101 is violated would there be a risk of a deeper downtrend. If this break materializes, the next potential support levels would be at 99.40 and the 200-DMA near 97.50.”