The US Dollar Index (DXY) has rebounded sharply from key flagged support from the May high, 55-day moving average and retracement support at 105.05/104.55. Analysts at Credit Suisse look for a potential resumption of the core uptrend.

The setback since July is corrective

“We look for a break above 107.43 to further reinforce our view that the setback has been corrective only for a retest of our target of major resistance at 109.25/110.25. An eventual break above here can expose the 121.02 high of 2001.”

“A close below 104.55 would warn of a deeper but still corrective setback with support seen next at 103.67 and with strong support expected at 101.62/30.”