The US Dollar Index (DXY) may yet see longer consolidation at key resistance, but economists at Credit Suisse maintain their core bullish outlook.

Support is seen moving to 107.59 initially

“The DXY is seeing a concerted retest of major resistance and our interim upside objective at 109.25/110.25. With the market also back at the upper end of its ‘typical’ extreme (9% above the 40-week average), a fresh pause from here should be allowed for.” 

“Big picture, with a five-year bull ‘triangle’ completed in April, we continue to look for an eventual break higher with resistance seen next at 111.31, ahead of 115.30 and eventually the 121.02 high of 2001.”

“Support is seen moving to 107.59 initially with 106.31 now ideally holding.”