• DXY failed once again to extend the move above 94.00.
• Another test of lows near 93.50 should not be ruled out yet.

DXY struggles for direction around the 94.00 neighbourhood on Wednesday. This area of resistance is coincident with the 20-day SMA.

If the index cannot clear the 94.00 area in the near term, it could expose the resumption of the downtrend. In that case, the immediate target should be at the 93.50 region ahead of the 55-day SMA at 93.30.

Looking at the broader picture, the constructive stance on the index is seen unchanged above the 200-day SMA at 91.92.

DXY daily chart