- The DXY struggles for direction at the recent lows near 95.50.
- The loss of 95.50 should open the door to further losses.
The US dollar index appears to have found decent support at the current year’s lows around 95.50 on Wednesday.
If sellers break below this level, they can push the index lower on the short-term horizon. Against this, the next support is at the weekly low of 94.94 registered on November 15.
Meanwhile, if the DXY follows above the 4-month support line (from the September low) near 95.10, further rallies in the DXY are likely. Looking at the bigger picture, the long-term positive stance remains unchanged as long as it is above the 200-day SMA at 93.10.
DXY day chart