The US Dollar Index (DXY) may see slightly further near-term strength. Nonetheless, analysts at Credit Suisse maintain their broader rangebound outlook.

DXY will eventually resolve its recent range lower

“DXY has edged above the 55-DMA at 103.45. This leaves us mildly biased towards a slightly deeper recovery to 105.63, potentially the 38.2% retracement of the 2022/2023 fall and 200-DMA at 106.15/45. We would expect this to prove the extent of the recovery though, and we would look for this to cap to define the top of a broader range.”

“Post this consolidation phase, our bigger picture view remains that the market will eventually resolve its recent range lower, triggering further weakness later on in the year to test 99.82/37, then the 61.8% retracement at 98.98.”