US Dollar Index Price Analysis: Rebound is seen as short-lived

• DXY meets decent initial contention in the 89.70 region.
• Further south comes in the 2021 low at 89.20 (January 6).

The leg lower in DXY seems to have met quite decent support in the 89.70/68 for the time being, where also converges the February lows.

The dollar’s view remains negative for the time being and thus leaves a deeper retracement of the index well on the cards in the very near-term. Against this, the downtrend could extend to the YTD low at 89.20 (January 6).

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.79, the outlook for the buck is forecast to remain negative.

DXY daily chart