• DXY comes under pressure following recent peaks near 96.50.
• The immediate outlook remains positive above the 5-month line.

DXY gives away part of the recent advance after three daily gains in a row on Tuesday.

If the recovery gains serious traction, then the index is expected to revisit the 96.90 region in the not-so-distant future, an area where the November and December 2021 highs coincide.

In the meantime, the constructive stance should remain well in place as long as the 5-month line near 95.25 holds the downside. In the longer run, the outlook for the dollar is seen as positive above the 200-day SMA at 93.65.

DXY daily chart