US Dollar Index could rebound towards the 114.80 high – SocGen

The Dollar Index (DXY) has pulled back after forming interim high near 114.80 last month. Nevertheless, technicals suggest prevalence of upward momentum, with a bounce towards the 114.80 peak again on the cards, economists at Société Générale report.

Only a break under 110.00/109.30 would suggest a risk of deeper pullback 

“Daily RSI is still within bullish territory denoting prevalence of upward momentum.”

“A rebound towards 113.60 and the peak near 114.80 is not ruled out.”

“Only if the support zone at 110.00/109.30 gets violated would there be a risk of a deeper pullback. In such a scenario, next objective could be at September low of 107.60.”