US Dollar Index Price Analysis: A drop to 89.20 is not ruled out

• DXY regained the 90.00 mark although struggles to keep it.
• The 2021 low at 89.20 (January 6) awaits further south.

DXY gives away part of Wednesday’s strong advance to levels above the 90.00 yardstick.

The rebound of the index, however, is deemed as short-lived amidst the prevailing negative stance on the dollar. That said, a deeper retracement still stays well on the cards in the short-term horizon, with the target at the YTD low at 89.20 (January 6).

In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.71 the outlook for the buck is forecast to remain negative.

DXY daily chart