Further gains target 108.00 and above

  • DXY extends the upside and prints new cycle highs near 107.80.
  • Immediately to the upside emerges the minor hurdle at 108.00.

DXY has quickly left behind Thursday’s small correction and advanced to new cycle peaks near 107.80 at the end of the week

Further upside in the dollar remains in store in the short-term horizon. That said, the surpass of the 2022 high at 107.78 (July 8) should pave the way for a move to the round level at 108.00 prior to the October 2002 top at 108.74.

As long as the 5-month line near 102.75 holds the downside, the near-term outlook for the index should remain constructive.

In addition, the broader bullish view remains in place while above the 200-day SMA at 98.45.

Of note, however, is that the index trades in the overbought territory and it therefore could extend the corrective decline to, initially, the 105.80 region (high June 15).

DXY daily chart

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