• DXY trades in a volatile fashion around 102.40/50 on Wednesday.
• So far, gains remain capped by the weekly high near 102.80.

DXY keeps the erratic performance above the 102.00 mark so far this week.

Considering the ongoing price action, further consolidation should not be ruled out, while occasional bullish attempts appear limited by the weekly highs in the 102.80/85 band. A Fibo level (of the mid May-late May sell-off) at 102.71 also underpins this region.

As long as the 3-month line around 101.15 holds the downside, the near-term outlook for the index should remain constructive.

Looking at the longer run, the outlook for the dollar is seen bullish while above the 200-day SMA at 97.13.

DXY daily chart