- DXY recorded new YTD lows in the 92.15/10 band on Tuesday.
- A deeper pullback should see the May 2018 low at 91.80 re-visited.
There is no respite for the downside pressure in DXY. In fact, the index is trading just pips above Wednesday’s fresh 2020 lows in the 92.15/10 band, area last seen in May 2018.
Against the current backdrop, further retracements are not ruled out. That said, interim contention is seen at the Fibo level 9of the 2017-2018 decline) at 91.92 ahead of the more significance support at 91.80 (May 2019 low).
The offered stance in the dollar is expected to remain unchanged while below the 200-day SMA, today at 97.71.
DXY daily chart