• DXY looks initially contained by the weekly low around 93.75.
• Further consolidation looks likely ahead of further gains.

DXY remains on the defensive although the downside seems limited around 93.75 so far.

The index could attempt some consolidation ahead of the resumption of the upside as long as 93.75 holds the downside in the near term. The loss of this level is expected to pave the way for a deeper move to the mid-93.00s. On the upside, there are no levels of significance until the 2021 high at 94.56 (October 12).

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.79

DXY daily chart