US Dollar Index Price Analysis: Upside lacks conviction

• DXY meets decent resistance around 95.70 on Tuesday.
• Another drop to the YTD low near 94.60 is not ruled out.

DXY leaves behind Monday’s downtick and resumes the upside, although the 95.70 region has emerged as quite a decent hurdle so far.

The inability of the index to resume the upside on a sustainable note could prompt sellers to return to the market. That scenario should expose the dollar to retest the so far monthly low at 95.13 (February 4). The loss of this level could motivate the 2022 low at 94.62 (January 14) to start emerging on the horizon.

In the near term, the 5-month line near 95.10 is expected to hold the downside for the time being. Looking at the broader picture, the longer-term positive stance in the dollar remains unchanged above the 200-day SMA at 93.52.