Recovery targets the 104.50 area

• DXY makes a U-turn following three daily drops in a row.
• Further upside retargets the monthly highs near 104.50.

DXY halts a three-session negative streak and manages to regain some composure and retest the 103.50/60 band on Thursday.

Once the recovery gathers steam, the index should shift its focus to another visit to the monthly peak of 104.44 (August 25) just before the May top of 104.69 (May 31). The breakout of this level could prompt a probable test of the 2023 high at 105.88 (March 8) to re-emerge on the horizon.

While above the key 200-day SMA, the outlook for the index is expected to remain constructive.

DXY daily chart