untitled design

Corrective drop could extend to 101.00

  • The US Dollar Index (DXY) retreats from Thursday’s 19-year high near 104.00.
  • A deeper correction could extend to the 101.00 area.

After hitting two-decade highs around 104.00, the US dollar index (DXY) finally faces a downward correction at the end of the week.

There is still room for further decline as the index continues to navigate in overbought territory, based on the daily RSI around 75. That said, the pullback has the potential to extend to the 101.00 area ahead of the weekly low in the area. from 99.80 (April). twenty-one).

The current bullish stance on the index remains supported by the 7-month line near 96.70, while the long-term outlook for the dollar is seen as constructive above the 200-day SMA at 95.70.

DXY daily chart

Technical levels

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular