- DXY extends consolidation phase above 104.00.
- Output of current state, would expose 103.40.
The US Dollar Index (DXY) fades Thursday’s advance and trades with modest losses at the end of the week, still within the dominance of sideways above 104.00.
Ideally, the index should break above the weekly high near 105.00 (June 22) in the short term to allow the recovery to gain momentum and attempt to visit the near 20-year high around 105.80 (June 15). On the other hand, a break of the lower bound of the range carries the potential to force the index to challenge the weekly low at 103.42 (June 16).
As long as the four-month line above 102.00 keeps downside limited, the short-term outlook for the index should remain constructive.
Looking at the long term, the outlook for the dollar looks bullish as long as it is above the 200 SMA at 97.85.
DXY day chart
Source: Fx Street
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