US Dollar Index Price Analysis: A move to 89.20 still remains on the cards

May 20, 2021

  • DXY’s recovery met resistance in the 90.30 region on Wednesday.
  • A move to the 2021 low at 89.20 (January 6) is not ruled out.

DXY resumes the downside following the FOMC-led rebound to the 90.30 region late on Wednesday.

The dollar’s view remains negative for the time being and thus leaves a deeper retracement of the index well on the cards in the very near-term. Against this, there is still scope for a pullback to the YTD low at 89.20 (January 6) in the shorter run.

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.78, the outlook for the buck is forecast to remain negative.

 

Courtesy of the Forex Mix