- DXY advances for the fifth straight session on Wednesday.
- The downside pressure should alleviate on a breakout of 102.50.
DXY extends the upside to new four-week peaks around 102.50, an area also coincident with the interim 55-day and 100-day SMAs.
The index appears poised to extend the ongoing multi-session recovery for the time being. Against that, the surpass of the weekly/monthly top of 102.50 (August 1) should prompt the index to rapidly challenge the temporary 55-day SMAs at 102.54.
Once the latter is cleared, it should alleviate the downside bias in the dollar and allow for extra gains to the next target at the July high of 103.57 (July 3), which appears underpinned by the proximity of the key 200-day SMA, today at 103.65.
Looking at the broader picture, while below the 200-day SMA the outlook for the index is expected to remain negative.
DXY daily chart
