- DXY extends Wednesday’s losses and remains in the 95.50 zone.
- The next target on the downside is the monthly low of 95.13.
US Dollar Index (DXY) maintains neutral/bearish mood unchanged around 95.50 on Thursday.
The inability of the index to gain convincing upside traction, ideally in the short term, could drive sellers back into the market. That scenario should force the dollar to initially retest the monthly low thus far at 95.13 (Feb 4), while a break of it could expose a deeper pullback to the 2022 low at 94.62 (Jan 14).
In the short term, the 5-month line around 95.15 is expected to keep weakness at bay for now. Looking at the bigger picture, the dollar’s long-term positive stance remains unchanged from remaining above the 200-day SMA at 93.56.
DXY day chart
Source: Fx Street
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