Still waiting for the technical correction

  • DXY prints tops in levels last seen 19 years ago.
  • Further gains in the dollar could see 104.00 revisited.

There are no changes to the bullish stance in the greenback, while DXY’s upside faltered just below the 104.00 yardstick on Thursday, an area last seen in January 2002.

The intense move higher in the dollar remains in the overbought territory – as per the daily RSI around 80 – and this could be a prologue to a potential near-term technical correction. Against that, initial contention emerges at the weekly low in the 99.80 zone (April 21).

The current bullish stance in the index remains supported by the 7-month line near 96.70, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.65.

DXY daily chart