- The DXY manages to regain some composure after hitting lows in two years.
- In case of more losses, I would aim for the April 2018 low in the 89.20 / 25 band.
The pessimism surrounding the dollar remains strong and solid in early 2021, although the US dollar DXY index managed to rebound from the new two-year low around 89.40 (Jan 4).
The outlook for the dollar remains bearish and thus more losses remain on the charts. That said, a solid break from the lows in the 89.40 region should lead to a potential visit to the April 2018 low at 89.22.
The downward pressure is expected to ease a bit from a break from the 2020-2021 resistance line, around 91.80 today.
Long-term, as long as the DXY trades below the 200-day SMA today at 94.90, the negative view is expected to prevail.
DXY day chart
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
