Odds for a test rise to 2020 lows near 91.70

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  • DXY downside momentum gains strength and is approaching 92.00.
  • The 2020 low near 91.70 emerges as the next key support.

The US Dollar Index (DXY) intensified the slide and is already trading at two-month lows in the 92.30 region, as appetite for riskier assets remains good and solid in global markets.

That being said, the door is now open not only for the continuation of the downtrend, but also for a possible visit from the 2020 lows at the 91.75 / 70 band recorded on September 1. A likely victory for Joe Biden in the US election gives more support to a weaker dollar in the long run.

As long as the DXY trades below the 200-day SMA today at 96.51, the bearish outlook is expected to persist.

DXY day chart

DXY

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Credits: Forex Street

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