US Dollar Index Price Analysis: Immediately to the downside comes 95.88

• DXY adds to Wednesday’s losses and approaches 96.00.
• Initial contention is seen at the YTD low at 95.88.

DXY extends the 2-day knee-jerk to the 96.00 neighbourhood on Thursday.

In case the selling pressure regains conviction, then the next support of significance is located at the so far 2021 low at 95.88 (January 5) followed by the December’s low at 95.57 (December 31).

In the meantime, while above the 4-month support line (off September’s low) around 95.00, further gains in DXY are likely. Looking at the broader picture, the longer-term positive stance remains unchanged above the 200-day SMA at 93.04.

DXY daily chart