- The DXY index returns to the decline and flirts once again with the 90.30 area.
- A breakout of this level exposes the 90.00 region ahead of 89.20.
The DXY index starts the week with a soft tone and returns to the 90.30 zone, where the recent support area is located, reinforced at the same time by the 2020-2021 support line.
A sustainable break below this zone should open the door to a possible visit to weekly lows around 90.00 (Jan 22) in the short term. Below this psychological level are the 2021 lows around 89.20 ahead of the March 2018 low at 88.94.
Meanwhile, occasional bouts of bullish pressure on the dollar are seen as only corrective and, in the long term, and as long as the DXY index remains below the 200-day SMA, today at 93.55, the stance is expected to bearish persist.
US Dollar Index DXY Daily Chart
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