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10 Feb 2022
US Dollar Index Price Analysis: Further weakness not ruled out
- DXY adds to Wednesday’s losses around the 95.50 zone.
- Next on the downside comes the monthly low at 95.13.
DXY keeps the neutral/bearish mood unchanged around the mid-95.00s on Thursday.
The inability of the index to garner convincing upside traction, ideally in the short term, could prompt sellers to return to the market. That scenario should force the dollar to initially retest the so far monthly low at 95.13 (February 4), while a breach of it could expose a deeper retracement to the 2022 low at 94.62 (January 14).
In the near term, the 5-month line around 95.15 is expected to hold the downside for the time being. Looking at the broader picture, the longer-term positive stance in the dollar remains unchanged above the 200-day SMA at 93.56.
DXY daily chart
