USD Index Price Analysis: The hunt for 104.70

• DXY reverses the initial pessimism and advances to daily highs.
• Extra recovery continues to target the 104.70 region.

DXY quickly leaves behind Monday’s decline and resumes the uptrend to retest the 104.30/40 band on Tuesday.

Immediately to the upside turns up the August top at 104.44 (August 25), while the surpass of this level should open the door to a rapid test of the May high of 104.69 (May 31) prior to the 2023 peak of 105.88 (March 8).

While above the key 200-day SMA, today at 103.09, the outlook for the index is expected to shift to a more constructive one.

DXY daily chart