US Dollar Index (DXY) has fallen to test and hold its uptrend from May 2021. Although we may see further near-term consolidation above here, economists at Credit Suisse remain biased to an eventual break lower.

Break above 103.52 to open up 105.12

“Whilst we see scope for near term consolidation at the uptrend from May 2021 of 101.90, we continue to look for a sustained break in due course for a retest of the 100.82 YTD low and eventually we think the 61.8% retracement of the 2021/2022 uptrend at 98.98.”

“Resistance at 103.52 now ideally caps to keep the immediate risk lower. Above can see strength back to 105.12.”