• DXY comes under downside pressure near 95.40 on Wednesday.
• Below 95.13 comes the YTD low near 94.60.

DXY fades Tuesday’s uptick and resumes the downside, dropping as low as the 95.30 region so far midweek.

The inability of the index to garner convincing upside traction, ideally in the short term, could prompt sellers to return to the market. That scenario should force the dollar to initially retest the so far monthly low at 95.13 (February 4) ahead of the 2022 low at 94.62 (January 14).

In the near term, the 5-month line in the 95.10/15 band is expected to hold the downside for the time being. Looking at the broader picture, the longer-term positive stance in the dollar remains unchanged above the 200-day SMA at 93.54.

DXY daily chart