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US Dollar Index Price Analysis: Downside should be corrective only

  • DXY recedes from recent 2021 highs around 94.56.
  • Intermittent dips are seen as buying opportunities.

DXY faces some selling pressure and corrects from Tuesday’s YTD highs in the 94.55/60 band.

The ongoing price action allows the index to keep the buying bias well in place and open the door to further upside in the not-so-distant future. That said, next target emerges at the September 2020 high at 94.74 and the 200-week SMA, today at 94.76. Further north should come the round level at 95.00.

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.75.

DXY daily chart

 

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