- The DXY is again under bearish pressure near 89.40.
- The next target on the downside is the April 2018 low near 89.20.
The US Dollar Index (DXY) starts the new year on the downside and extends the decline to new lows, to the 89.40 region.
The outlook for the dollar appears to be in bearish territory and thus the chances of further losses remain high. That said, the next relevant support is at 89.22 (April 2018 low).
The downward pressure is expected to ease somewhat in the event of a breakout of the 2020-2021 resistance line, around 91.80 today.
Meanwhile, as long as the DXY trades below the 200-day Simple Moving Average (SMA), today at 94.94, the negative view is forecast to prevail.
DXY day chart
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