US Dollar Index Price Analysis: Further downside not ruled out

• DXY attempts a recovery around the 93.00 region.
• Initial contention emerges in the 92.80 zone so far.

DXY now looks to consolidate in the 93.00 neighbourhood following three consecutive daily pullbacks, including new lows at 92.80 (Tuesday).

The loss of the latter could spark further bouts of weakness and drag the index to weekly lows around 92.50 (August 13/16). This support zone is also reinforced by the proximity of the 50-day SMA.

In the meantime, and looking at the broader scenario, the positive stance on the dollar is expected to remain unchanged as long as the index trades above the 200-day SMA, today at 91.31.

DXY daily chart