• DXY attempts a moderate recovery although it still trades below 104.00.
• The 55-day SMA around 103.50 holds the downside so far.

DXY prints a decent rebound following Monday’s multi-week lows in the mid-103.00s.

Despite the daily bounce, the index remains under pressure and appears still supported by recent lows near 103.50, an area coincident with the provisional 55-day SMA. Below the latter, the dollar could slip back to the weekly low at 102.58 (February 14).

In the meantime, while below the 200-day SMA at 106.63, the outlook for the greenback is expected to remain negative.

DXY daily chart