- The DXY partially reversed the strong advance on Friday when it reached levels above 91.00.
- Another visit to monthly lows near 90.40 remains on the table.
The US Dollar Index (DXY) encountered a stiff hurdle around 91.40 and was followed after a downward correction towards the 91.00 support on Monday.
No further weakness ahead should be ruled out. That being said, a breakout of the 91.00 level has the potential to trigger a deeper move, initially towards the monthly lows so far near 90.40 (April 29 low). The containment region around 91.00 is also reinforced by the 100-day SMA, today at 91.03.
Below the 200-day SMA (91.96), the outlook for DXY is expected to remain on the bearish side.
DXY day chart
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