US Dollar Index to edge back towards 93.30 on failure to reclaim 96.50 – SocGen

The US Dollar Index (DXY) has sharply reversed from the peak of 97.45. On Thursday, DXY lost nearly 0.7% and stays within a touching distance of 95.00. Economists at Société Générale highlight the risk of seen a slump to the 93.30 mark.

Low of January at 94.50/94.30 is first support

“Daily MACD is attempting an entry within negative territory which denotes further downside is not ruled out.” 

“Low of January at 94.50/94.30 is first support.”

“Failure to reclaim graphical levels of 96.50 could indicate return towards the upper limit of its base at 93.30.”