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  • DXY’s upside appears to have faltered near 93.50 so far.
  • Further north is located the November 2020 high near 94.30.

The dollar’s rally seems to have met quite a tough barrier in the mid-93.00s for the time being.

DXY needs to clear this area (preferably in the near-term) to allow for the continuation of the uptrend. In this case, there are no relevant up barriers until the November 2020 highs in the 94.25/30 band.

In the meantime, the downside pressure around the index looks alleviated after the recent breakout of the 200-day SMA (92.48). If DXY manages to keep business above the latter on a sustainable basis, then the outlook should shift to constructive, at least in the near-term.

DXY daily chart