MARKET OUTLOOK - Dollar Index Must Break 105.70

In a recent analysis, Quek Ser Leang from UOB Global Economics & Markets Research stated that the USD Index needs to break and hold above 105.70 to make a decisive move towards 106.13 and 106.30. The strategist noted that the USD Index has surpassed the weekly resistance at 105.30, reaching the 105.70 level, highlighting that the descending trend line resistance combining the highest levels from October 2023 and April 2024 is at 105.70. Ser Leang pointed out that the daily moving average convergence divergence (MACD) indicator has moved into positive territory, although there is a bearish divergence in the daily relative strength index. He emphasized that the USD Index should continue to rise steadily due to the positive shift in the daily MACD between divergence signals; otherwise, the risk of a retracement would increase.