- DXY’s recovery run out of steam around 90.70 on Monday.
- Further upside should meet the next hurdle at the 91.00 area.
After bottoming out in fresh lows near 89.20 earlier in the new year, the dollar managed to regain moderate buying attention and lifted the index to the vicinity of 90.70 on Monday.
Despite the ongoing rebound, the prospect for the greenback remains fragile, with further losses still seen challenging the 89.00 support ahead of the March 2018 low at 88.94.
If the bullish attempt becomes more sustainable, then there is the chance of DXY to move to the weekly high in the 91.00 region (December 21). Above this level, the prevailing downside pressure is expected to mitigate somewhat.
In the longer run, as long as DXY trades below the 200-day SMA, today at 94.65, the negative view is forecast to prevail.
DXY daily chart
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