- The DXY recovers the smile after the sharp drop on Tuesday.
- Above 109.00 the dollar could revisit all-time highs.
The US Dollar Index (DXY) fades Tuesday’s decline and returns to positive territory with the next target at the 109.00 area.
A continuation of the bullish momentum looks increasingly likely in the short term. That said, beyond the 2022 high of 109.29 (July 14) the index could challenge the September 2002 high of 109.77 before the 110.00 level.
Meanwhile, if it remains above the six-month support line near 105.10, the index is expected to maintain the positive stance in the short term.
As for the long-term scenario, the bullish view on the dollar remains as long as it is above the 200-day simple moving average at 100.55.
DXY day chart
Source: Fx Street
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