USD Index: Rally to extend further toward key inflection point at 106.15/62 – Credit Suisse

The US Dollar Index (DXY) remains well supported and above the 55-Day Moving Average (DMA) at 103.47. Analysts at Credit Suisse look for DXY rally to extend further to its 200-DMA and 38.2% retracement of its fall from October.

106.15/62 remains seen as key inflection point to watch 

“We continue to look for a deeper recovery to 105.63 and then the 38.2% retracement of the 2022/2023 fall and 200-DMA at 106.15/62. Our bias for now remains to look for this to cap to define the top of a broader range.” 

“Should a close above the 200-DMA at 106.62 be seen though this would warn of a more protracted phase of USD strength and a test of 107.80/99 next.”

“Below the 55-DMA at 103.47 would suggest the recovery may already be coming to an end but with a break below 102.59 seen needed to clear the way for a retest of the 100.82 YTD low.”