• DXY climbs to new highs around 102.85 on Thursday.
• A close above the 55-day SMA should alleviate the selling pressure.

DXY rises further and gradually approaches the key barrier at the 103.00 hurdle on Thursday.

The index appears poised to extend the ongoing multi-week recovery for the time being. Against that, a convincing surpass of the provisional 55-day SMAs at 102.53 should mitigate the downside bias in the dollar and allow for extra gains to the next target at the July high of 103.57 (July 3), which appears underpinned by the proximity of the key 200-day SMA, today at 103.61.

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

DXY daily chart