The US Dollar Index (DXY) setback has been well contained at its rising 55-day moving average (DMA) at 101.49. Economists at Credit Suisse expect DXY to climb towards the 109.25/110.25 region.

Support at 101.49/05 to hold further setbacks if seen

“We remain of the view recent weakness has been corrective only. Above 103.93 should add weight to our view for a move back to the 105.01 current cycle high. We continue to look for an eventual sustained move above here for a move to 109.25/110.25 next – the 78.6% retracement of the 2001/2008 bear market and September 2002 high.”

“Support at 101.49/05 ideally continues to hold further setbacks if seen. A break would warn of a deeper albeit still corrective setback to price support at 99.82/42.”