• DXY comes under some pressure around the 97.00 level.
• Further upside could retest the 2022 high at 97.73.

DXY fades Thursday’s climb to new cycle tops in the 97.70/75 band and returns to the 97.00 neighbourhood at the end of the week.

Bets for the continuation of the upside remain on the rise in the near term, with the next barrier at the 2022 high at 97.73 (February 24) just ahead of the 97.80 level (June 30 2020 high).

The short-term constructive stance remains supported by the 5-month line, today near 95.50, while the outlook for the dollar is seen as positive above the 200-day SMA at 93.89 in the longer run.

DXY daily chart