A strong bounce reopens the door to 91.00

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DXY bounces sharply from lows below 90.00 on Thursday.
The 91.00 zone now stands as the next key hurdle for the bulls.

After falling to the 89.70 region on Thursday, the DXY managed to make a major bounce to the 90.75 / 80 band at the end of the week.

To extend the recent rally, the bulls should regain the area above 91.00 (Feb 17) ideally in the very near term. If that’s the case, then the next target to highlight is at the 2021 so far highs around 91.60 (Feb 5).

Bouts of bullish pressure on the index, however, are seen as corrective only amid the broader bearish view of the dollar. That said, bullish attempts to the 91.00 hurdle and beyond could represent short opportunities in the current context.

Long-term, as long as DXY is trading below the 200-day SMA (93.12), the negative stance is expected to persist.

Daily chart

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