US Dollar Index Price Analysis: Weakness seen as buying opportunity

• DXY sheds ground following the disappointing Payrolls.
• Another visit to the YTD highs around 94.50 remains on the cards.

DXY gives away initial gains and refocuses on the 94.00 neighbourhood in response to the poor prints from September’s NFP at the end of the week.

The ongoing offered bias is seen as corrective only and is expected to resume the upside in the very near term. That said, the index could well see the recent YTD highs around 94.50 re-visited in the short-term horizon ahead of September 2020 high at 94.74 and the 200-week SMA, today at 94.76. Further north should come the round level at 95.00, also in the not-so-distant future.

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.67.

DXY daily chart