US Dollar Index Price Analysis: Door open for a move to 89.50
|- DXY’s upside faltered in 3-week highs around 90.60.
- The leg lower could re-test the May lows in the mid-89.00s.
DXY corrects lower after meeting strong resistance in the 90.50/60 band helped at the same time by disappointing Payrolls at the end of the week.
If the selling impulse picks up extra pace, then the 9000 neighbourhood should emerge on the horizon as the next target of note. A breach of it should open the door to a deeper retracement to the May’s low near 89.50.
In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.62 the outlook for the buck is forecast to remain negative.
DXY daily chart
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