- The DXY recorded new highs for 2021 around 91.60 on Friday.
- Then to the upside, the 100-day SMA emerges around 91.90.
The US dollar index (DXY) comes under some selling pressure after hitting new highs for this year around 91.60 during the Asian session.
The recent breakout of the 91.00 zone gives additional legs to the dollar’s recovery and could motivate the index to attempt a test of, initially, the 100-day SMA at the 91.90 area in the near term. The recent breakout of the 2020-2021 resistance line (around 90.80) has somewhat eased the downward pressure and reinforces this view.
The ongoing bounce will be considered corrective only, as long as the DXY is trading below the 200-day SMA, today at 93.83. As long as it trades below, the long-term bearish bias will persist.
DXY day chart