US Dollar Index Price Analysis: Next support comes in at 89.50

• DXY remains within a narrow range around the 90.00 level.
• Immediate contention emerges at the 89.50 region.

DXY treads water around the 90.00 neighbourhood at the beginning of the week.

Last week’s rebound to the vicinity of 90.50 lacked follow through and sparked a subsequent pullback to the current levels. If bulls fail to regain the 90.50 area in the near-term, then DXY could be exposed to a deeper retracement to, initially, last week’s lows in the mid-89.00s.

Further south comes in 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 91.67 the outlook for the buck is forecast to remain negative.

DXY daily chart