- DXY without a clear direction on Friday near 92.30, although still showing weakness.
- A further drop is still likely with the next target near 91.70.
The US Dollar Index (DXY) continues to struggle to reverse six consecutive sessions with losses around the six-month support line at the 92.30 / 20 band at the close of the week.
The overall outlook for the dollar remains fragile and therefore additional losses are still expected. With that said, the next prominent target emerges at the month’s low at 92.13 (Nov 9) ahead of the 2020 low at 91.74 (Sept 1).
In the short term, selling pressure is expected to ease if it rises above the weekly highs of 93.20 (November 11). Going forward, as long as the DXY trades below the 200 day SMA, today at 96.21, the negative view is forecast to persist.
DXY day chart
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