USD Index to head higher toward 50-DMA at 103.50/104 – SocGen

The US Dollar Index has recently carved out a higher trough at 101.90 as compared to the one in February at 100.80. Economists at Société Générale expect DXY to test the 103.50/104.00 zone.

Recent low of 101.90 is an important support

“Downward momentum is getting arrested. The index is attempting a break above the channel that has encompassed recent down move.”

“A revisit of 50-DMA at 103.50/104.00 is expected. Overcoming this could trigger an extended rebound towards March peak of 105.90.”

“Recent low of 101.90 is an important support.”