USD Index Price Analysis: Further consolidation in the pipeline
|- DXY keeps the choppy trade well and sound below 105.00.
- Recent tops near 105.30 continue to limit the upside in the dollar.
DXY surrenders part of Thursday’s marked advance and returns to the area well south of the 105.00 yardstick on Friday.
So far, the continuation of the range bound theme seems the most likely scenario in the very near term for the index. In the meantime, the dollar needs to clear the February peak at 105.35 (February 27) to allow for extra recovery and a potential challenge of the 2023 top at 105.63 (January 6).
In the longer run, while below the 200-day SMA at 106.54, the outlook for the index remains negative.
DXY daily chart
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