The USD Dollar Index (DXY) has staged a rebound after defending the lower limit of a multi-month channel near 93.20/92.90 which is also the 23.6% retracement from May. Economists at Société Générale expect the index to test the 96.20 level on a break above 94.50/75.

Further downside on a break below 93.20/92.90 

“Holding above the channel (now at 93.50), DXY could head towards weekly Ichimoku cloud and recent high at 94.50/94.75. If this is reclaimed, the uptrend is expected to extend towards next objectives of 95.30 and 96.20, the 50% retracement from 2020.”

“Only a break below 93.20/92.90 would denote a deeper down move.”