DXY extends the bounce above 91.00. Further north, February highs emerge around 91.60.
The DXY rallied even higher and managed to hit new 4-week highs near 91.40. This zone coincides with the 100-day SMA (91.29).
DXY bullish momentum accelerated and has the potential to extend to the 2021 highs at the 91.60 zone (Feb 5), where the move is expected to hit a stiff barrier.
The strong rally in the DXY is seen as corrective only, as the broader bearish view still weighs on the dollar. If the 91.60 region is breached, then the next focus of attention should shift to the Fibonacci level (from the 2020-2021 dip) at 92.46.
Long-term, as long as DXY trades below the 200-day SMA (93.04), the negative stance is expected to persist.
Daily chart
Technical levels
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