• DXY’s strong upside meets resistance near 103.60 on Friday.
• The key 200-day SMA emerges as the next hurdle near 105.80.

The solid weekly performance of DXY seems to have encountered a firm obstacle around multi-week highs near 103.60 so far on Friday.

Further upside seems like the most probable scenario for the index so far. Against that, a convincing move past 103.60 could pave the way for a potential challenge of the key 200-day SMA, today at 105.78 just ahead of the 2023 peak at 105.88 (March 8).

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

DXY daily chart