- DXY makes new cycle highs around 100.50 on Wednesday.
- Additional gains could reach the 100.86 level ahead of 100.93.
The US Dollar Index (DXY) extends the rally for another session to fresh highs in the 100.50 region, an area last seen in May 2020.
Price action around the index continues to suggest more upside in the very short term. That said, the next hurdle of relevance now emerges at the May 2020 high at 100.55 (May 14) followed by 100.86 (April 24, 2020 high). If the buying momentum persists, then the April 2020 peak at 100.93 could be back on investors’ radar.
The current bullish stance in the index remains supported by the 7-month line near 96.40, while the long-term outlook for the dollar looks constructive as long as it remains above the 200-day SMA at 95.17.
DXY day chart
Source: Fx Street
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