• DXY reverses the initial pessimism and challenges weekly highs.
• If bulls push higher the index could revisit the 102.60 region.

DXY extends the weekly recovery to the area of recent peaks around 100.50 on Thursday.

A more serious bullish attempt in the index should clear the 102.60 zone, where the provisional 55-day and 100-day SMAs coincide.

Looking at the broader picture, while below the 200-day SMA at 104.12, the outlook for the index is expected to remain negative.

DXY daily chart