• DXY retreats to the 104.50 region after failing near 104.70.
• The surpass of 105.00 should expose a test of the 2022 high.

DXY looks to add to Tuesday’s gains, although the bull run seems to have faltered around the 104.70 zone on Wednesday.

Ideally, the index should surpass the weekly high near 105.00 (June 22) in the near term to allow for the recovery to gather momentum and attempt a visit to the nearly 20-year peak in the 105.80 zone (June 15).

As long as the 4-month line near 102.25 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 98.01.

DXY daily chart