- The DXY failed to extend the recent bullish attempt beyond 90.60.
- The bearish leg could retest the May lows around 89.50.
The US Dollar Index (DXY) extends the consolidation mood always around the key 90.00 zone on Wednesday.
If bearish momentum picks up, then a retest at 90.00 should emerge on the horizon in the near term. A breakout should open the door for a deeper pullback towards the May low near 89.50.
On the upside, bullish attempts remain limited by the 90.50 / 60 band for the time being.
Meanwhile, and looking at the broader picture, as long as the DXY remains below the 200-day SMA today at 91.58, the outlook for the dollar is forecast to remain negative.
DXY day chart
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.