USD Index to extend its decline on failure to hold 101.30 – SocGen

The US Dollar Index is approaching a multi month descending trend line and in proximity to last May trough of 101.30. A break below here could open up further falls, economists at Société Générale report.

Rejection of 103 could trigger further losses

“Daily MACD has started posting positive divergence which denotes receding downward momentum; however last week high of 103 must be overcome to affirm a short-term up move.”

“Failure to hold 101.30 could mean persistence in decline towards next potential support of 100.60/100.00 representing the peak of 2015.”