Increase the odds of a move to 89.20

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  • The DXY index tests the 2020-2021 support line at 89.80.
  • Further below this region are the 2021 lows at 89.20.

The DXY index resumes the downward movement and extends the slide below the psychological support at the round 90.00 level.

Sellers face a significant region of contention around the critical 90.00 level, which in turn is supported by the proximity of the 2020-2021 support line. A sustained breakout of this region should open the door for a possible move towards the 2021 low at 89.20 (Jan 6) before targeting the March 2018 low at 88.94.

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Meanwhile, occasional bouts of bullish pressure in the DXY index are seen as only corrective amid the broader bearish view around the dollar. With that said, bullish attempts to the 91.00 region and beyond could represent short opportunities in the current context.

Long-term, as long as the DXY index remains below the 200-day SMA today at 93.17, the negative stance is expected to persist.

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US Dollar Index DXY Daily Chart

DXY

US dollar DXY index technical levels

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