DXY → Next hurdle emerges around 106.00

DXY looks to extend further last week’s rebound, although the 106.00 region proves to be quite a strong barrier for the time being.

Once the 106.00 hurdle is cleared, the index could then embark on a potential test of the November peak at 107.11 (November 1) ahead of the 2023 high of 107.34 (October 3).

In the meantime, while above the key 200-day SMA, today at 103.60, the outlook for the index is expected to remain constructive.