US Dollar Index Price Analysis: A deeper pullback in the offing?

• DXY broke below the 2019-2020 support line on Thursday.
• Further south now emerges the Fibo retracement at 96.03.

The sharp sell-off in DXY met contention in the mid-96.00s so far on Friday.

Despite the current oversold conditions (as per the daily RSI), the dollar remains under heavy pressure and faces the prospects of deeper pullbacks in the short-term horizon.

The breakdown of the 2019-2020 support line is quite an important bearish event, and this could lead to a potential visit to the 96.00 neighbourhood, where sits a Fibo retracement of the 2017-2018 drop.

DXY daily chart