USD to remain under pressure if concerns dissipate – OCBC

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The US Dollar Index (DXY) trades little changed as markets continue to adopt a cautious stance. Economists at OCBC Bank expect the greenback to come under renewed downside pressure if concerns around the banking system ease.

Next resistance at 103.40, support at 102.80

“On net, the mix of growth worries, lingering concerns of banking stresses could temporarily benefit safe haven proxies such as JPY, Gold and USD in the interim. But if concerns dissipate, we should expect USD to remain under pressure with risk proxies should recover.”

“Next resistance at 103.40 levels (50% fibo retracement of 2023 low to high, 50-DMA), 103.95 (38.2% fibo) and 104.20 (21-DMA).”

“Support at 102.80 (61.8% fibo), 102 levels.”