US Dollar Index Price Analysis: Rising bets for a test of 89.20

• DXY resumes the downside and re-visits the mid-89.00s.
• The 2021 low at 89.20 (January 6) awaits in the pipeline.

DXY adds to Monday’s downtick and clinches new monthly lows in the vicinity of 89.50 on Tuesday.

The dollar’s view remains negative for the time being and thus leaves a deeper retracement of the index well on the cards in the very near-term. Against this, there is still scope for a pullback to the YTD low at 89.20 (January 6) in the shorter run.

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.73 the outlook for the buck is forecast to remain negative.

DXY daily chart