The USD is extending its consolidation phase following its relentless sell-off from March and David Sneddon and his team at Credit Suisse view this as a healthy development, unwinding the oversold condition to leave the bear trend in a better condition to eventually resume.

Short-term, with daily MACD momentum turning higher for the US Dollar Index (lower pane of Chart), Sneddon thinks there is risk of a stronger rebound with key near-term resistance seen at 93.99/94.00, above which a small base can be established for further recovery to 94.54/65, potentially 95.72, which Sneddon would then expect to cap the USD consolidation phase.

See Chart.