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  • Price action around DXY stays well underpinned by 92.00.
  • A breach of this area opens the door to extra losses.

The index navigates the lower bound of the recent range and remains well supported by the 92.00 area for the time being.

If DXY clears this area, then there is the chance of a deeper pullback to, initially, the 50-day SMA in the mid-91.00s.

Further south is located the more relevant area around 91.30, where sit weekly lows recorded in mid-March.

Below the 200-day SMA (92.28) the outlook for DXY is expected to return to the bearish side.

DXY daily chart