• DXY attempts a mild rebound to the 102.70.75 band on Wednesday.
• The monthly low near 101.90 emerges as a decent contention area.

DXY attempts to leave behind part of the recent downside pressure, although the bull run faltered near 102.70 on Wednesday.

In the meantime, it seems the index has moved into some consolidative phase. The drop below the March low at 101.91 (March 23) is expected to encourage sellers to return to the market and open the door to a potential visit to the 2023 low around 100.80 (February 2).

Looking at the broader picture, while below the 200-day SMA, today at 106.57, the outlook for the index is expected to remain negative.

DXY daily chart