- The DXY adds to Tuesday’s bearishness and breaks 107.00.
- Further weakness could send the index falling to the 105.30 area.
The US Dollar Index (DXY) remains bid and briefly tests the 106.80 zone, or three-day low, on Wednesday.
Should the selling pressure pick up, the dollar could give up more ground and challenge the November low at 105.34 (15 Nov). This area of contention appears to be underpinned by the proximity of the ever-relevant 200 SMA, today at 105.22.
As long as it is above the 200 SMA, the outlook for the index should remain constructive.
DXY day chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
