- The DXY recovery encountered resistance at the 90.30 region on Wednesday.
- A move to the 2021 low at 89.20 is not ruled out.
The US dollar index (DXY) resumed its decline after the rebound led by the Federal Reserve minutes to the 90.30 region late on Wednesday.
The dollar outlook remains negative for the time being and therefore the possibility of a deeper pullback in the DXY is still there in the very short term. There is still room for a retracement to this year’s low at 89.20 (Jan 6) in the near term.
Meanwhile, and looking at the broader picture, as long as the DXY remains below the 200-day SMA today at 91.78, the outlook for the dollar is forecast to remain negative.
DXY day chart
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