After a consolidation period in March the US Dollar Index (DXY) uptrend has resumed. Whilst the trend is now showing signs of losing momentum, economists at Credit Suisse look for the DXY to see further strength yet to the top of the five-year sideways range at 102/102.45.

Looking for signs of a more important peak at 102.00/102.45

“Whilst the trend is showing signs of losing some momentum we maintain our core bullish bias for an eventual test of the top of the five-year range at 102.00/102.45. Our bias remains for an important cap to be set here.”

“Whilst we would look for a fresh cap at 102/102.45, it is quite possible on a long-term basis the USD may be constructing a large and significant bullish ‘triangle’ continuation pattern, although this would only be seen confirmed above the 103.82 high of 2017.”