US Dollar Index Price Analysis: A deeper retracement gathers traction

• DXY resumes the downside and re-visits the 89.70 region.
• The 2021 low at 89.20 (January 6) awaits in the pipeline.

DXY adds to Thursday’s weakness and returns to the area of monthly lows around 89.70.

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 91.7876 the outlook for the buck is forecast to remain negative.

DXY daily chart