- The DXY failed to extend the recent bullish attempt beyond 90.60.
- The bearish leg could lead to a test of the May lows at 89.50.
The US Dollar Index (DXY) is sailing without a clear direction at the lower limit of the recent range and following the decline following Friday’s employment report.
If the selling momentum picks up, then a retest of the 90.00 zone should emerge on the horizon in the near term. A breakout should open the door for a deeper pullback towards the May low near 89.50.
Meanwhile, and looking at the broader scenario, as long as it remains below the 200-day SMA today at 91.61, the outlook for the dollar is forecast to remain negative.
DXY day chart