- The DXY rally petered out around 90.70 on Monday.
- New momentum should meet the next hurdle at the 91.00 area.
After bottoming out at new lows near 89.20 at the beginning of the new year, the dollar managed to regain moderate buying attention and lifted the US dollar index (DXY) to the neighborhood of 90.70 on Monday.
Despite the ongoing rally, the outlook for the dollar remains fragile, with additional losses still seen leading to challenge the 89.00 support before the March 2018 low of 88.94.
If the bullish attempt becomes more sustainable, then there is a chance that the DXY will move to the weekly high in the 91.00 region (Dec 21). Above this level, the prevailing downward pressure is expected to ease somewhat.
Long-term, as long as the DXY trades below the 200-day SMA today at 94.65, the negative view is expected to prevail.
DXY day chart
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
