Further recovery likely above 100.85

  • DXY adds to the weekly rebound on Wednesday.
  • A sustainable breakout of 102.00 remains elusive so far.

DXY adds to Tuesday’s advance, although the bullish attempt ran out of steam around 102.10 so far midweek.

The upside momentum at the index seems to lack strength so far, and the inability to spark a more serious rebound could prompt sellers to return to the market and shift the focus to a potential test of the 55-day SMA, today at 101.22.

As long as the 3-month line around 100.85 holds the downside, the outlook for the index should remain constructive.

Looking at the longer run, the outlook for the dollar is seen constructive while above the 200-day SMA at 96.89.

DXY daily chart

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