consolidation is possible before further decline


Having bottomed out at 89.20 new lows earlier, the dollar index was able to attract buyers and target 90.70 earlier in the week, from where it retreated later.

Despite the ongoing rebound, the outlook for the dollar remains shaky. Indeed, following a potential short consolidation, the index is expected to challenge the 90.00 level and eventually retest the 2021 lows around 89.20 (Jan 6) ahead of 89.00 and the March 2018 low (88.94).

In the long term, as long as the DXY is trading below its 200-day SMA (94.55 today), the outlook will remain negative.

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Karice Dabule

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