US Dollar Index Price Analysis: A drop to 89.50 remains on the cards

FX
  • DXY failed to extend the recent bullish attempt beyond 90.60.
  • The leg lower could re-test the May lows in the mid-89.00s.

DXY navigates without a clear direction in the lower bound of the recent range and following Friday’s post-NFP sell-off.

If the selling impulse picks up extra pace, then a re-test of the 90.00 mark should emerge on the horizon in the near-term. A breach of it should open the door to a deeper retracement to the May’s low near 89.50.

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.61 the outlook for the buck is forecast to remain negative.

DXY daily chart

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