- The DXY loses support and is approaching the 90.00 level.
- Immediately to the downside is the 2021 low at 89.20.
Selling momentum in the US dollar index (DXY) extends into Thursday’s session and drags the dollar to the key support zone around 90.00.
The inability of the USD bullish momentum to push the index above the recent highs in the 91.00 region prompted sellers to return to the market and now the focus of attention has shifted to the continuation of the downtrend.
That said, a breakout of the 90.00 zone should come as no surprise to anyone on the short-term horizon. Below this psychological level are the 2021 lows around 89.20 ahead of the March 2018 low of 88.94.
The ongoing bounce is considered corrective only and in the long term, as long as the DXY trades below the 200-day SMA, today at 94.32, the negative view is expected to persist.
DXY day chart
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