- DXY falls under negative pressure near 95.40 on Wednesday.
- Below 95.13 comes the low for the year near 94.60.
The US Dollar Index (DXY) snapped Tuesday’s rally and resumes its lows, reaching as low as 95.30 so far this week.
The inability of the index to gain convincing upside strength, ideally in the short term, could drive sellers back into the market. That scenario should lead the dollar to initially retest the monthly low thus far at 95.13 (Feb 4) before the 2022 low at 94.62 (Jan 14).
In the short term, the five-month line at the 95.10/15 band is expected to keep weakness limited for now. Looking at the bigger picture, the dollar’s long-term positive stance remains unchanged as long as it remains above the 200-day SMA at 93.54.
DXY day chart
Source: Fx Street
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