US Dollar Index Price Analysis: Next Support Comes In At 89.50

Editor • May 31, 2021 at 10:50 AM EDT

DXY remains within a narrow range around the 90.00 level. Immediate contention emerges at the 89.50 region.

DXY treads water around the 90.00 neighbourhood at the beginning of the week.

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Last week’s rebound to the vicinity of 90.50 lacked follow through and sparked a subsequent pullback to the current levels. 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.

Further south comes in the YTD low at 89.20 (January 6).

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.67 the outlook for the buck is forecast to remain negative.

DXY daily chart

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