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USD Index Price Analysis: No changes to the consolidative theme

  • DXY comes under pressure amidst choppy price action this week.
  • The loss of 101.00 could open the door to a probable test of the YTD low.

DXY fades part of Tuesday’s acute rebound and return to the 101.40/50 region on Wednesday.

The recent choppy performance in the index seems to have now refocused back on the downside. Against that, DXY could cling to this consolidative theme ahead of a probable drop to the 101.00 zone. The loss of the latter could expose a move to the so far 2023 lows near 100.80 (April 14).

Looking at the broader picture, while below the 200-day SMA, today at 106.12, the outlook for the index is expected to remain negative.

DXY daily chart

 

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