US Dollar Index Price Analysis: Potential Consolidation Very Near-Term

Editor • Jun 8, 2021 at 9:11 AM EDT

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 trades unconvincingly above the key 90.00 barrier amidst rising cautiousness ahead of the release of US inflation figures on Thursday.

Dollars, Currency, Money, Us Dollars, Franklin

Image Source: Pixabay

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

DXY daily chart

(Click on image to enlarge)

DOLLAR INDEX SPOT

Disclosure:

Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.