US Dollar Index Price Analysis: A move to 89.00 is shaping up

• DXY remains on the defensive and closer to the 89.00 level.
• The next target of note emerges at 88.94, March 2018 low.

The pessimism surrounding the dollar remains well and sound early in 2021, with DXY dropping to new lows in the 89.20 area on Wednesday.

The prospect for the greenback remains negative, with further losses now seen challenging the 89.00 support ahead of the March 2018 low at 88.94.

The downside pressure is expected to mitigate somewhat on a breakout of the weekly high in the 91.00 region (December 21).

In the longer run, as long as DXY trades below the 200-day SMA, today at 94.85, the negative view is forecast to prevail.

DXY daily chart