US Dollar Index Price Analysis: A breach of 90.00 exposes 2021 lows at 89.20
|- DXY navigates within a tight range in the low-90.00s.
- Further south of 90.00 emerges the YTD low at 89.20.
DXY clings to daily gains in the 90.30 area at the beginning of the week.
The inability of USD-bulls to push further north of recent tops in the 91.00 region in past sessions prompted sellers to return to the markts and shifted the attention to the potential continuation of the downtrend.
That said, a breach 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.
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 94.23, the negative view is expected to persist.
DXY daily chart
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