US Dollar Index Price Analysis: Rising bets for further decline

• DXY manages to regain some composure following recent lows.
• Extra losses now target the April 2018 low in the 89.20/25 band.

The pessimism surrounding the dollar remains well and sound early in 2021, although DXY managed well to bounce off multi-month lows around 89.40 (January 4).

The outlook for the greenback remains bearish and therefore further losses stay well on the cards. That said, a solid breach of lows in the 89.40 region should lead to a potential visit to April 2018 low at 89.22.

The downside pressure is expected to mitigate somewhat on a breakout of the 2020-2021 resistance line, today around 91.80.

In the longer run, as long as DXY trades below the 200-day SMA, today at 94.90, the negative view is forecast to prevail.

DXY daily chart