- DXY has resumed the downside following the 2-day bullish attempt.
- Yearly lows in the mid-92.00s are expected to be re-visited soon.
The rebound in DXY from levels last seen in May 2018 in the 92.50 region appears to have met a tough hurdle in the 94.00 neighbourhood (Monday).
Sellers look to have regained the upper hand so far on Tuesday, forcing the dollar to resume the downside in the very near-term. That said, the next support of note is now at the 2020 lows near 92.50 (July 31). A deeper pullback should meet 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 97.98.
DXY daily chart
Reprinted from fxstreet, the copyright all reserved by the original author.
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