US Dollar Index Price Analysis: Potential consolidation very near-term

• DXY failed to extend the recent bullish attempt beyond 90.60.
• The leg lower could re-test the May lows in the mid-89.00s.

DXY trades unconvincingly above the key 90.00 barrier amidst rising cautiousness ahead of the release of US inflation figures on Thursday.

If the selling impulse picks up extra pace, then a re-test of the 90.00 mark should emerge on the horizon in the near-term. A breach of it should open the door to a deeper retracement to the May’s low near 89.50.

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.60 the outlook for the buck is forecast to remain negative.

DXY daily chart