• The index keeps the range bound theme intact above 102.00.
• The dollar appears supported by the YTD low near 101.80.

The index advances to 2-day highs and retests the mid-102.00s at the end of the week.

So far, the continuation of the side-lined mood looks the most likely scenario for the dollar in the very near term. In case bears regain the upper hand, the loss of the January low at 101.77 (January 16) should put a potential deeper drop to the May 2022 low around 101.30 (May 30) back on the investors’ radar prior to the psychological 100.00 level.

In the meantime, while below the 200-day SMA at 106.44 the outlook for the DXY should remain tilted to the negative side.

DXY daily chart