US Dollar Index Price Analysis: Scope for further decline

• DXY clinches new weekly lows in the 90.25/20 band.
• The next support of note comes in at the 90.00 region.

DXY moves further south and slowly approaches the psychological support at 90.00.

The index is flirting with the 2020-2021 line, which is expected to hold the sellers initially. A sustainable breach of this area should open the door to a probable visit to the weekly lows around 90.00 (January 22) in the next sessions. Below this psychological level is located the 2021 lows around 89.20 ahead of the March 2018 low at 88.94.

In the meantime, occasional bouts of upside pressure in the dollar are seen as corrective only and in the longer run, as long as DXY trades below the 200-day SMA, today at 93.69 the bearish stance is expected to persist.

DXY daily chart