• DXY gives away initial gains and now struggles around 95.90.
• There is still scope for another move to the mid-95.00s.

DXY’s bullish attempt seems to have met initial resistance in the 96.10/15 band midweek.

The inability of the dollar to regain upside traction on a sustainable fashion in the very near term could spark another bout of weakness and the subsequent visit to the area of recent lows around 95.50.

In the meantime, while above the 2-month support line (off September’s low) near 94.10, extra gains in DXY remain well on the table. In addition, the broader constructive stance remains underpinned by the 200-day SMA at 92.50.

DXY daily chart