US Dollar Index to retain a bid tone, next resistance seen at 110.30 – OCBC

The US Dollar Index holds in positive territory but stays below 110.00. Strategists at OCBC Bank highlight the key technical levels to watch.

USD could still stay bid on dips

“The USD could still stay bid on dips and take cues from upcoming US data – retail sales, industrial production today, Uni of Michigan sentiment on Fri, alongside the roll-out of regional Fed manufacturing surveys for September. In the interim, the debate between a 75 bps and 100 bps hike is likely to retain a bid tone on the USD overall.”

“Resistance at 110.30 before 110.78 (previous high). Support at 109.10 (21 DMA), 108.45 (38.2% Fibo retracement of Aug low to Sep high) and 107.70 levels (50 DMA, 50% Fibo).”

See – US Retail Sales Preview: Forecasts from six major banks, can the US consumer remain strong?