The US Dollar Index touched its lowest level in seven months at 102.94. Economists at Credit Suisse expect DXY to find a floor at what looks to be better support at 102.99/101.99.

USD to see further mild weakness in Q1

“We continue to look for further weakness in Q1 to a cluster of supports in the broad 102.99/101.99 support zone – the March 2020 high, 50% retracement of the 2021/2022 uptrend and back of the five-year ‘triangle’ pattern. We continue to look for an important low here.” 

“Should weakness directly extend below 101.99 and then 101.30 we would see scope for the sell-off to extend to the 50% retracement at 98.98.”

“Resistance for the current rebound is seen at 105.63 initially, then 106.20/25 with 108.00 ideally capping.”