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  • DXY comes under extra selling pressure and breaches 93.00.
  • The initial target is at the 2020 low at 92.55 (July 31).

Sellers have regained control of the price action around DXY, dragging it back to the sub-93.00 levels, paving the way at the same time for a deeper retracement.

In fact, further downside is increasingly likely in the current context. Bets for another visit to the YTD low at 92.55 are rising, while further decline should expose the Fibo level (of the 2017-2018 drop) at 91.92 ahead of the May 2018 low at 91.80

The negative outlook on the dollar is expected to remain unaltered while below the 200-day SMA, today at 97.96.

DXY weekly chart