US Dollar Index Price Analysis: Corrective downside could reach 93.70

• DXY has been rejected from YTD highs around 94.50.
• Further losses could retest the 93.70 region near term.

DXY trades on the defensive and adds to Thursday’s pullback, gradually approaching the 94.00 neighbourhood.

Further downside could well see the 94.00 round level retested. A deeper correction is then expected to meet the next contention area near 93.70, where August’s high sits.

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.57.

DXY daily chart