- DXY manages to regain some traction following +2-year lows.
- The Fibo level at 94.20 emerges as the next hurdle.
The bearish bias in the dollar remains well and sound despite the ongoing rebound in DXY from levels last seen in May 2018 in the 93.20/15 band. The bounce is seen as corrective only and follows the oversold conditions of the index.
If the bounce gains serious traction, then it should meet resistance at 94.20, where sits a Fibo level of the 2017-2018 drop.
Looking at the broader scenario, however, further downside is increasingly likely, facing the next stop at 92.24 (low May 14 2018).
The negative outlook on the dollar is expected to remain unaltered while below the 200-day SMA, today at 98.05.
DXY daily chart
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