Societe Generale FX Strategy Research notes that the USD Index (DXY) has been undergoing a break below the upward trend drawn since 2014 (98.50/98.85) and a down slanting trend from December.
Such a pattern, according to SocGen, denotes that the down move is likely to extend.
"The Index should drift towards the daily channel limit at 96.45, as well as the 61.8% retracement from May 2016. This will be a prominent support," SocGen projects.
On the upside, SocGen think that 98.50/85 should cap near-term bounces.
DXY is trading circa as 97.32 as of writing.
Source: Societe Generale Cross Asset ResearchOriginal Article
