USD index to test key levels

The sharp decline in the USD index should test key support levels in the coming days that will determine its medium term direction. According to Walter Zimmermann at United-ICAP, the level to watch is 97.15 below which any prospect of the decline being short-lived is discounted. Meanwhile, Andy Dodd at Louis Capital Markets says that a short-term corrective rally is likely before the index touches 96.17.