USD is poised to remain soft and could retest the recent lows in the DXY index near 101 in the short run but a decisive move through the recent range lows may have to wait until we get a stronger sense of how far central banks will push on with policy tightening. 

Broadly though, the short- and medium-term backdrop appears more negative for the USD which should curb the USD’s ability to recover and drive better selling interest on moderate rebounds.