• DXY comes under heavy downside pressure and approaches 104.00.
• Further weakness should leave the 105.30 region as a near-term top.

DXY gives away around a cent following the earlier bullish attempt to the area just above 105.00 the figure on Wednesday.

The dollar needs to clear the February peak at 105.35 (February 27) to allow for the recovery to dispute the 2023 top at 105.63 (January 6). Failing to do so, the dollar could spark a deeper pullback and thus leave the 105.30 region as an interim top for the time being.

In the longer run, while below the 200-day SMA at 106.50, the outlook for the index remains negative.

DXY daily chart