• DXY extends the upside and pierces the 103.00 barrier.
• A convincing break above 103.05 exposes further gains.

DXY adds to Tuesday’s advance and climbs to multi-week peaks just beyond the 103.00 barrier on Wednesday.

Further upside seems like the most probable scenario for the index so far. Against that, a sustained surpassing of the April top at 103.05 (April 3) is expected to mitigate the downside pressure and encourage DXY to extend its march north further.

The index is seen facing the next resistance level of significance not before the 2023 top of 105.88 (March 8).

Looking at the broader picture, while below the 200-day SMA today at 105.80, the outlook for the index is expected to remain negative.

DXY daily chart