- DXY trimmed early gains to the 113.80 area on Thursday.
- In the short term, it seems that there will be more falls.
The US Dollar Index (DXY) seems to reverse some of Wednesday’s sharp pullback, although the upside attempt appears to have met stiff resistance near 113.80.
Despite the rebound, the dollar continues to fall. Conversely, the corrective leg lower could extend to the weekly low at 109.35 (Sep 20), before the 55-day SMA at 108.41.
In a broader scenario, the prospects for additional dollar gains should not change as long as the index trades above the 7-month support line around 107.10.
In the longer term, DXY is expected to maintain its constructive stance as long as it is above the 200-day SMA at 102.38.
DXY daily chart
Source: Fx Street
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