USD Index: Failure to reclaim 105.80 could lead to one more leg of correction – SocGen

US Dollar is near six-month low. Reclaiming at 105.80 is crucial to highlight short-term bounce, economists at Société Générale report.

Short-term resistance is located at 108.20

“Daily MACD is within deep negative territory pointing towards an overstretched move however failure to reclaim at 105.80 could lead to one more leg of correction towards next support zone at 2017/2020 peaks of 103.80/103.00.”

“Short-term resistance is located at 108.20, the 38.2% retracement of recent down move.”

See: US Dollar to strengthen through the first quarter of 2023 – ING