- DXY flirts with recent lows in the 90.20 region.
- There is scope for a probable visit to the 90.00 level.
DXY extends the leg lower and revisits the area of recent lows in the proximity of 90.20 on Monday.
Below this area emerges the psychological support at 90.00, which is in turn underpinned by the 2020-2021 support line. A breakdown of this zone should open the door to a probable move to the 2021 lows around 89.20 (January 6) ahead of the March 2018 low at 88.94.
In the meantime, occasional bouts of upside pressure in the index are deemed as corrective only amidst the broader bearish view on the dollar. That said, bullish attempts to the 91.00 hurdle and beyond could represent selling opportunities against the current backdrop.
In the longer run, as long as DXY trades below the 200-day SMA (93.31), the negative stance is expected to persist.
DXY DAILY CHART