Possible consolidation before further losses

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  • The DXY struggles to get momentum above 90.30.
  • A move up and a test to 91.00 still remain on the charts.

After bottoming out at new lows near 89.20 early in the new year, the dollar managed to find demand and extended the move to the 90.70 zone earlier in the week, where it met strong resistance so far.

Despite the ongoing rally, the outlook for the dollar remains fragile. Indeed, after a brief period of potential consolidation, the index is expected to challenge the 90.00 level and eventually retest the 2021 lows near 89.20 (Jan 6) ahead of 89.00 and the March 2018 low. at 88.94.

Long-term, as long as DXY trades below the 200-day SMA today at 94.55, the negative view is forecast to prevail.

DXY day chart

DXY

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