- The DXY flirts with recent lows in the 90.20 region.
- There is scope for a probable visit to the 90.00 level.
The US Dollar Index (DXY) extends bearish leg and revisits the area of recent lows in the vicinity of 90.20 on Monday.
Below this area, psychological support emerges at 90.00, which in turn is sustained by the 2020-2021 support line. A breakdown of this zone should open the door for a likely move towards the 2021 lows around 89.20 (Jan 6 low) before the March 2018 low at 88.94.
Meanwhile, occasional bouts of bullish pressure on the index are seen as corrective only amid the broader bearish view of the dollar. That said, bullish attempts to the 91.00 barrier and beyond could represent short opportunities in the current context.
Long-term, as long as the DXY is trading below the 200-day SMA (today 93.31), the negative stance is expected to persist.
DXY day chart
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