• The index extends the consolidative mood in the low-103.00s.
• The breach of the January low near 102.90 exposes a deeper pullback.

DXY keeps treading water around the 103.30 zone on Wednesday.

Bearish moves could put the so far January low at 102.94 (January 9) to the test in the near term, while a break below this level carries the potential to spark a retracement to, initially, the May 2022 low around 101.30 (May 30) ahead of the psychological 100.00 level.

In the meantime, while below the 200-day SMA at 106.37 the outlook for the index should remain tilted to the negative side.

DXY daily chart