US Dollar Index Price Analysis: Further weakness is seen as a buying opportunity
|- DXY fades part of Friday’s rebound and retests 104.20.
- The 4-month line near 101.70 props up the upside bias.
DXY resumes its leg lower and leaves behind Friday’s bullish attempt.
Considering the ongoing price action, a further correction should not be ruled out in the short-term time frame. That said, another visit to the post-FOMC low near 103.40 (June 16) is expected to remain on the cards, although this and a potential deeper decline could be deemed as buying opportunities.
As long as the 4-month line around 101.20 craddles the downside, the near-term outlook for the index should remain constructive.
Looking at the longer run, the outlook for the dollar is seen bullish while above the 200-day SMA at 97.61.
DXY daily chart
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