The Dollar Index (DXY) failed to cross above January high of 110.15 in recent attempt and has gradually pulled back below the 50-DMA, Societe Generale's FX analysts report.

Next potential objective can be located at 106.30

"It is now challenging the upper limit of previous multiyear range. Recent pivot low of 106.90/106.65 is first layer of support. Daily MACD posted negative divergence and has dipped below equilibrium line highlighting lack of steady upward momentum."

"If the index struggles to reclaim the MA at 108 there would be risk of a deeper decline. Below 106.90/106.65, next potential objectives could be located at 106.30 and December low of 105.40/105.10."