- DXY has some selling bias after new highs.
- Continuation of the uptrend could see 100.00, already visited.
The US Dollar Index (DXY) is facing some selling pressure and pulls back to the 98.90/85 zone, where some initial dispute appeared so far on Tuesday.
In light of the recent price action, more gains are likely for the time being. That being said, the next hurdle lines up at the 99.97 level (25 May 2020 high), closely followed by the psychological 100.00 mark. However, a continuation of the leg to the downside after the current overbought condition of the index should not be ruled out.
The current bullish stance on the index remains supported by the 5-month line today near 95.70, while the long-term outlook for the dollar is seen as constructive above the 200-day SMA at 94.17.
DXY daily chart
Additional technical levels
Source: Fx Street
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