US Dollar Index Price Analysis: Downside pressure alleviated above 91.00
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- DXY corrects lower after flirting with the 91.00 level on Monday.
- Interim hurdle lines up at the 55-day SMA at 91.09.
DXY met sellers in the 91.00 neighbourhood on Monday and now retreats to the 90.50 region on turnaround Tuesday.
Despite the ongoing rebound, the prospect for the greenback remains fragile. That said, a re-visit of the 90.00 yardstick should not surprise anyone in the short-term horizon. Below this psychological level is located the 2021 lows around 89.20 ahead of the March 2018 low at 88.94.
A surpass of the 91.00 region should mitigate the downside pressure somewhat. The 55-day SMA, today ay 91.09, reinforces this interim hurdle.
The ongoing rebound is seen as corrective only and in the longer run, as long as DXY trades below the 200-day SMA, today at 94.42, the negative view is forecast to persist.
DXY daily chart
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