USD Index Price Analysis: Downside pressure now looks mitigated

• DXY extends the upside to new 2-week highs north of 103.00.
• The May’s top near 104.70 comes next for dollar bulls.

DXY advances for the second session in a row and looks to consolidate the breakout of the key 103.00 hurdle on Thursday.                                                                                           

In light of the weekly recovery, the index should meet the next up-barrier of significance not before the May high at 104.69 (May 31) just ahead of the crucial 200-day SMA, today at 104.95.

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

DXY daily chart