- The US Dollar Index (DXY) is under further selling pressure and revisits the 104.30 area.
- The next downside target is the post-FOMC low around 102.30.
The US Dollar Index (DXY) extends corrective decline as dollar breaks out of overbought territory at the start of the week.
Against that, further pullbacks remain well on the charts and initially target minor support at 103.37 (low May 11). Breakout of this area could force the index to drop further and visit 102.35 (low May 5), where decent containment is expected to emerge.
The current bullish stance on the index remains supported by the 8-month line around 97.15, while the long-term outlook for the dollar is seen as constructive above the 200-day SMA at 96.34.
DXY daily chart
Technical levels
Source: Fx Street
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