- The DXY resumes lower and revisits the 89.70 region.
- A drop to the 2021 low at 89.20 is on the table.
The US Dollar Index (DXY) extends the tone of weakness on Thursday and returns to the zone of monthly lows around 89.70.
The outlook for the dollar remains negative for the time being and thus paves the way for a deeper pullback in the DXY in the very short term, which could extend to the current year’s low at 89.20 (Jan 6).
Meanwhile, in a broader view, as long as it remains below the 200-day SMA today at 91.78 / 76, the outlook for the dollar will remain negative.
DXY day chart
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