Break below 200-DMA at 103.78 to clear path for return to February low near 103.00 – SocGen

The US Dollar (USD) ended a run of five weeks of gains. Economists at Société Générale analyze Greenback’s outlook.

Month-end equity rebalancing flows could keep USD on the back until Thursday’s PCE

Month-end equity rebalancing flows could keep the Dollar on the back foot until the release of PCE inflation on Thursday. 

The reconvergence of the DXY towards the 200-DMA (103.78) requires close scrutiny. A break below would clear the path for a return to early February lows near 103.00 and could guide EUR/USD above 1.0900, GBP/USD over 1.2750 and AUD/USD towards 0.6600.

 

Source: https://www.fxstreet.com/news/usd-index-break-below-200-dma-at-10378-to-clear-path-for-return-to-february-low-near-10300-socgen-202402261555