DXY: 101.80 and 103.30 are likely to remain crucial levels - SocGen

Research Team at Societe Generale, notes that the Dollar Index temporarily pierced above their advocated resistance of 101.80 which happens to be the 61.8% retracement of whole downtrend during 2001 and 2008 and has quickly retraced forming a spinning top last week.

Key Quotes

“The pattern is formed when prices fail to close at highest levels achieved and generally denotes first signs of weakening in momentum after an elongated move. Weekly stochastic indicator is also close to a ceiling that has been instrumental in defining resistance levels historically. Thus 101.80 and more importantly next projections at 103.30 are likely to remain crucial levels for the Dollar Index.”