- DXY regains some strength after Tuesday’s pullback.
- Bullish attempts remain limited around the 2021 highs near 91.60.
The DXY It failed to break above the 91.00 level on Wednesday, retreating into negative territory after hitting multi-week highs at the 91.35 / 40 zone.
An overcoming of the latter, ideally in the short term, has the potential to provoke a visit to the 2021 highs in the 91.60 zone (February 5), where the index is expected to encounter a stiff barrier.
Despite the strong bounce, the current rally in DXY is considered only corrective, as the broader bearish view still weighs on the dollar. If the 91.60 region is breached, then the next focus of attention should shift to the Fibonacci level (from the 2020-2021 dip) at 92.46.
Long-term, as long as the DXY trades below the 200-day SMA (93.00), the negative stance is expected to persist.
Daily chart
Technical levels
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