- The DXY moves to new 2021 highs near 91.50.
- Higher up is the 100-day SMA around 91.90.
The US dollar index (DXY) regained its smile and rise after Wednesday’s retracement and climbed to the 91.50 area, marking new highs for this year.
The recent breakout of the 91.00 zone gives additional legs to the dollar’s recovery and could prompt the index to attempt a test of, initially, the 100-day SMA at the 91.90 zone 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 is considered only corrective and in the long term the bearish stance is expected to persist, provided the DXY trades below the 200-day SMA, today at 93.86.
DXY day chart
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