- The DXY gives up part of the good advance on Monday.
- More range-runs around current levels look likely.
The auspicious start to the week for the dollar was short-lived, as the US Dollar Index (DXY) undid some of the recent gains on Tuesday.
For now, the continuation of the sideways trend seems to be dominant for the dollar, at least in the short term.
Should the bears regain control, the loss of the January low at 101.98 (Jan 13) should put a possible deeper fall back to the May 2022 low around 101.30 ( May 30) before the psychological level of 100.00. To the upside, there are no major hurdles until the January high at 105.63 (Jan 6).
Meanwhile, below the 200-day SMA at 106.41, the outlook for the index should remain negative.
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.
