Economists at Credit Suisse maintain their bullish USD outlook. They maintain a target of 97.73/80 for the US Dollar Index (DXY) but see risk now for a move beyond here in 2022.

Consolidation from late November is seen as a temporary pause

“The high-level consolidation from late November is seen as a temporary pause ahead of a resumption of its core uptrend to our 97.73/80 core objective – the 61.8% retracement of its 2020/2021 bear trend and June 2020 reaction high. Our bias remains for this to then cap to define the top of a potential consolidation phase.”

“We see the broader risk still higher and above 97.80 on a sustained basis post a consolidation phase should see the USD strengthen further, with resistance seen next at 98.65, ahead of the 100.56/93 zone.” 

“Over the long-term, we would not even rule out a move to the top of its five-year range, seen starting at 102.50.”