USD Index to plunge towards 100 on failure to defend 103 – SocGen

The US Dollar Index is close to potential support of 103. A break below here would open up significant losses to the 100 level, analysts at Société Générale report.

Death cross points towards deeper correction

“Daily MACD has started posting positive divergence however signals of a meaning rebound are not yet visible. The 50DMA is about to cross below the 200DMA forming a death cross; this points towards persistent downtrend.”

“Test of 103 could result in an initial bounce however a break above the confluence of the MAs at 105.80/106.50 is essential to affirm a meaningful up-move.”

“Failure to defend 103 could mean continuation in decline towards last June low of 102/101.30 and 100.”