US Dollar Index Price Analysis: A drop to 97.00 is not ruled out

• DXY managed to meet some buying interest in the 97.30 region.
• Key contention emerges in the 97.00 neighbourhood ahead of 96.30.

The sharp sell-off in DXY met contention in the 97.20/15 band so far on Wednesday and is now staging a technical bounce following oversold conditions.

In spite of the bounce, sellers remain in control and therefore further downside remain well in the pipeline in the short-term horizon. That said, the probable target remains at 97.00, where sits the 2019-2020 support line.

A breach of this area will be an important bearish event and could trigger a deep move to the December 2019 lows in the 96.30 zone.

DXY daily chart