- The recent weakness in DXY faced a containment zone near 92.40.
- A break below could lead to more losses in the short term.
The decline in the US dollar index (DXY) on Monday stopped just before the critical 200-day simple moving average at the 92.40 region.
As long as it is above this area, the short-term outlook for the DXY is expected to remain constructive and allow for additional gains.
On the opposite side, a convincing return to the area below the 200 day SMA should nullify the current positive short-term stance and open the door to further weakness towards initially 91.30 (March 18).
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.
