• DXY strongly reverses two consecutive daily pullbacks.
• Extra rebound in the dollar targets the 2022 high near 104.00.

DXY quickly leaves behind the recent weakness, including the post-FOMC low near 102.30, and refocuses on the upper end of the recent range.

That said, if the rebound picks up further pace, then the index could challenge the 19-year high just below the 104.00 yardstick (April 28), while the trespass of this level could open the door to 105.63 (December 11 2002 high).

The current bullish stance in the index remains supported by the 8-month line in the 96.85/90 band, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.92.

DXY daily chart