the ice us dollar index fell through important chart support tuesday sending a message that further losses may be looming the index dxy  which tracks the us dollar’s performance against a basket of rivals sank 12 in afternoon trading to put it on track for its lowest close since april 2022 the selloff comes after relatively tame consumerinflation data for june sent treasury yields lower meaning investors who bought dollars so they could purchase us debt instruments were making less money read marketwatch’s bond report column the dollar index dropped below where it had bottomed during previous selloffs in february april and may around the 101 level “with headline inflation continuing to moderate yield differentials between the us and other countries will be perceived as less attractive by global bond investors” janney technical analyst dan wantrobski wrote in a note to clients “this plus the added nuance of recession creeping into the narrative could lead to further weakness in the us dollar in our view” also read fed’s williams says economy won’t hit its weakest point until next year the dollar index was already in a precarious technical position after the sharp drop in late 2022 through january 2023 it could never mount much of a bounce the rally to the early march recovery peak retraced less than onethird of the decline from the twodecade high in late september to the initial low in early february and as wantrobski noted the dollar has stayed below its 200day moving average which many chart watchers use to define the longterm trend as it has remained rangebound through the entire first half of 2023 looking below wantrobski sees strong support in the mid90s range that was a support zone seen in early 2022 just before the big rally which was fueled by expectations of and the actual start of the federal reserve’s interestrateincrease cycle in march 2022 and below that the dollar’s firsthalf 2021 lows in the 89to90 range should provide support