US Dollar Index Price Analysis: Further downside could test 98.50/60
- DXY briefly dropped below the 99.00 support on Tuesday.
- Decent support is expected to emerge in the 98.50/60 band.
DXY tested the sub-99.00 area on Tuesday, recording at the same time fresh multi-day lows.
The corrective downside could extend to the 98.54/58 band, where coincide the November’s top and a Fibo retracement of the 2020 rally.
Looking at the broader picture, the dollar’s outlook remains constructive while above the 200-day SMA, today at 97.82.
DXY daily chart