US Dollar Index now targets 97.80 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted the index could surpass 98.00 once 97.80 is cleared.

Key Quotes

“In our last Chart of the Day for USD Index from 2 months ago (25 Nov 2021), we highlighted that ‘USD Index is likely to trend upwards in the months ahead and the next resistance level of note is at 97.80’. We added, ‘only an unlikely break of the 55-week exponential moving average would indicate that USD Index is not ready to trend upwards’. Our anticipation for an up-trend did not materialize as USD Index subsequently traded sideways before dipping to a low of 94.63 two weeks ago.”

“However, USD Index lifted off this week and while the week has yet to end, USD Index appears poised to post its biggest 1-week gain since Jun 2021. The large gain coupled with weekly MACD turning positive suggests that USD Index is ready to trend higher this time round. In view of the strong momentum, a break of 97.80 would not be surprising. If USD Index can close above this level on a weekly basis, it would increase the odds of an advance to 98.20. In order to maintain the current impulsive momentum, USD Index should ideally stay above 95.40 even though the key support is at 94.63.”