- The DXY manages to make up recently lost ground and is approaching 90.00.
- The further recovery points to the minor barrier at the 21-day moving average at 90.16.
After bottoming out at new lows around 89.20 on Wednesday, the US Dollar Index (DXY) managed to rebound somewhat for now and is now trading near the key 90.00 mark.
Despite the ongoing rally, the outlook for the dollar remains negative, and new losses are now seen, which would put the 89.00 support at risk prior to the March 2018 low at 88.94.
If the bullish attempt accelerates, then there is minor resistance at the 21-day SMA today at 90.16. Furthermore, the downward pressure is expected to ease somewhat as a break from the weekly high in the 91.00 region (December 21).
Long-term, as long as the DXY trades below the 200-day SMA, today at 94.80, the bearish view is forecast to prevail.
DXY day chart