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