US Dollar Index Price Analysis: Strong bounce re-opens the door to 91.00

• DXY sharply bounces off Thursday’s sub-90.00 lows.
• The 91.00 area now stands as the next key hurdle for bulls.

After a drop to the 89.70 region on Thursday, DXY manages to stage an important rebound to the 90.75/80 band at the end of the week.

In order to extend the recent recovery, bulls need to regain the area above 91.00 (February 17) ideally in the very near-term. If that’s the case, then the next target of note comes in at the so far 2021 highs around 91.60 (February 5).

Bouts of upside pressure in the index, however, are deemed as corrective only amidst the broader bearish view on the dollar. That said, bullish attempts to the 91.00 hurdle and beyond could represent selling opportunities against the current backdrop.

In the longer run, as long as DXY trades below the 200-day SMA (93.12), the negative stance is expected to persist.

DXY daily chart