US Dollar Index Price Analysis: Recovery seen faltering near 94.00

• DXY bounces off lows near 92.50 and moves above 93.00.
• Further recovery is forecasted to meet resistance around 94.00.

Sellers remain well in control of the sentiment around the dollar despite the ongoing rebound, which is seen as corrective only amidst the current environment.

If the buying impetus does not subside, then the index could struggle to overcome recent weekly peaks in the 94.00. neighbourhood (August 3).

The negative outlook on DXY is expected to remain unaltered while below the 200-day SMA, today at 97.91. Against this backdrop, a breakdown of 92.52 should open the door to a deeper pullback to the Fibo level (of the 2017-2018 drop) at 91.92 ahead of the May 2018 low at 91.80.

DXY weekly chart