USD Index Price Analysis: Above 104.00 comes 104.70

• DXY leaves behind Wednesday’s daily drop and approaches 104.00.
• Once 104.00 is cleared, the index might challenge the 104.70 zone.

DXY manages to regain balance and sets aside Wednesday’s retracement.

The index challenges once again the area of monthly peaks near the 104.00 mark, while a convincing breakout of this zone should open the door to a potential visit to the May top of 104.69 (May 31) ahead of the 2023 peak of 105.88 (March 8).

While above the key 200-day SMA, today at 103.13, the outlook for the index is expected to shift to a more constructive one.

Looking at the broader picture, a convincing breakout of the 200-day SMA should shift the outlook for the index to a more constructive one.

DXY daily chart