- DXY is under pressure and revisits the 112.30 area.
- Resumption of rallies continues to target 114.00 and higher.
The US Dollar Index (DXY) partially tempers Wednesday’s strong advance after the index failed to extend the rebound beyond the 113.00 area on Thursday.
The index, meanwhile, looks poised to continue trading in a 112.00-114.00 range at least until the next FOMC event. Should the bulls break above the 114.00 zone, gains could accelerate to the 2022 high near 114.80.
Prospects for additional dollar gains should not change as long as the index trades above the 8-month support line near 108.20.
In the longer term, DXY is expected to maintain its constructive stance as long as it is above the 200-day SMA at 103.61.
DXY daily chart
Source: Fx Street
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