- DXY extends the rally in the second half of the week.
- The index faltered once again around the 96.00 region.
The US Dollar Index (DXY) is now alternating gains with losses after failing to break the key 96.00 barrier earlier in the session.
The inability of the index to gain convincing upside traction, ideally in the short term, could drive sellers back into the market. That scenario should force the dollar to initially retest the monthly low thus far at 95.13 (Feb 4) before the 2022 low at 94.62 (Jan 14).
In the short term, the 5-month line near 95.20 is expected to hold weakness for now. Looking at the bigger picture, the dollar’s long-term positive stance remains unchanged from remaining above the 200-day simple moving average at 93.59.
DXY day chart
Source: Fx Street
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