US Dollar Index Price Analysis: Rising odds for extra pullbacks

DXY breaks below the 90.00 level to new multi-day lows.
Immediate contention emerges at the 89.50 region.

Pablo Piovano FXStreet

DXY extends Monday’s pessimism and breaches the key support at the 90.00 yardstick.

Last week’s rebound to the vicinity of 90.50 lacked follow through and sparked a subsequent correction to the current sub-90.00 area. If bulls fail to regain the 90.50 area in the near-term, then DXY could be exposed to a deeper retracement to, initially, last week’s lows in the mid-89.00s.

If the selling impulse gathers further steam, then the YTD low at 89.20 (January 6) is expected to emerge on the horizon.

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.66 the outlook for the buck is forecast to remain negative.

DXY daily chart

Dollar Index Spot

Overview
Today last price	89.82
Today Daily Change	20
Today Daily Change %	-0.03
Today daily open	89.85

Trends
Daily SMA20	90.27
Daily SMA50	91.25
Daily SMA100	91.07
Daily SMA200	91.67

Levels
Previous Daily High	90.12
Previous Daily Low	89.82
Previous Weekly High	90.44
Previous Weekly Low	89.54
Previous Monthly High	91.44
Previous Monthly Low	89.54
Daily Fibonacci 38.2%	89.93
Daily Fibonacci 61.8%	90.01
Daily Pivot Point S1	89.74
Daily Pivot Point S2	89.63
Daily Pivot Point S3	89.43
Daily Pivot Point R1	90.04
Daily Pivot Point R2	90.24
Daily Pivot Point R3	90.35

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.