• DXY reaches new cycle tops around 100.50 on Wednesday.
• Extra gains could hit the 100.86 level ahead of 100.93.

DXY extends the rally for yet another session to new tops in the 100.50 region, an area last seen in May 2020.

Price action around the index continues to suggest further upside in the very near term. That said, the next hurdle of note now emerges at the May 2020 high at 100.55 (May 14) followed by 100.86 (high April 24 2020). If the buying impetus persists, then the April 2020 peak at 100.93 could return to the investors’ radar.

The current bullish stance in the index remains supported by the 7-month line near 96.40, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.17.

DXY daily chart