USD Index Price Analysis: Ongoing pullback seen as temporary
|- DXY fades the earlier bullish move to new 2-month highs near 104.50.
- The resumption of the uptrend should retarget the 200-day SMA.
DXY comes under fresh downside pressure following earlier peaks past 104.50 on Tuesday.
In the near term, extra gains appear on the cards despite the ongoing knee-jerk. That said, the surpass of the May high at 104.53 (May 30) should put a potential visit to the key 200-day SMA, today at 105.65, back on the radar prior to the 2023 top of 105.88 (March 8).
Looking at the broader picture, while below the 200-day SMA the outlook for the index is expected to remain negative.
DXY daily chart
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