- The DXY index corrects lower from the weekly highs just above the 91.00 level.
- The 90.00 region is expected to support sellers in the short term.
After hitting weekly highs above the 91.00 level, the dollar is now facing increasing selling pressure and dragging the DXY index into the 90.30 region.
Below this area is psychological support at 90.00, which coincides with the key support line of 2020-2021. A breakout of this level should open the door for a visit to the 2021 lows around 89.20 (Jan 6) before the March 2018 low at 88.94.
Meanwhile, occasional bouts of bullish pressure in the DXY index are seen only as corrective amid the broader bearish view of the dollar. That said, bullish attempts towards the 91.00 region and beyond could represent short opportunities in the current context.
Long-term, as long as the DXY index remains below the 200-day SMA today at 93.36, the negative stance is expected to persist.
US dollar index daily chart
US dollar index technical levels
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