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  • DXY struggles for direction below the 97.00 mark on Wednesday.
  • A move to 3-month lows in the 95.70 zone is now on the cards.

The rebound in DXY appears to have met a tough barrier ahead of the 97.90 area, where sits a key Fibo retracement of the 2017-2018 drop.

Sellers, however, appear to remain in control and therefore the door is now open for a potential retracement to monthly lows in the 95.75/70 band.

While below the 200-day SMA, today at 98.37, the dollar’s outlook is expected to remain bearish.

DXY daily chart