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A drop to 89.20 is not ruled out

  • The DXY recovered the 90.00 mark, although not firmly yet.
  • The 2021 low at 89.20 is the level to look down on.

The US Dollar Index (DXY) is giving up some of Wednesday’s gains, when it returned above 90.00.

However, the index rally is seen as short-lived amid the prevailing negative stance on the dollar. That said, a deeper pullback still holds with significant probabilities in the short term, with the target at this year’s low at 89.20 (January 6 low).

Meanwhile, and looking at the broader picture, as long as the DXY remains below the 200-day SMA today at 91.71, the outlook for the dollar is forecast to remain negative.

DXY day chart

DXY

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