US Dollar Index set to continue its uptrend after a temporary pause – SocGen

The US Dollar Index (DXY) uptrend has paused after facing resistance near 97.00. Nonetheless, economists at Société Générale expect the DXY to resume its advance.

Pullback to extend on a break below 95.85

“Interestingly, the index has closed at similar levels to the opening price in last three weeks forming Doji candlesticks; this denotes lack of directional clarity.”

“Daily MACD has dipped below its trigger but remains anchored within positive territory, thus, the pause appears to be transitory.”

“Last week's low of 95.85 is first layer of support. Only if this gets violated would the pullback extend towards projections and a multi-month trend line at 95.10/94.50. This would be a pivotal level.”