USD Index Price Analysis: Ongoing pullback seen as temporary

• DXY fades the earlier bullish move to new 2-month highs near 104.50.
• The resumption of the uptrend should retarget the 200-day SMA.

DXY comes under fresh downside pressure following earlier peaks past 104.50 on Tuesday.                                                                                             

In the near term, extra gains appear on the cards despite the ongoing knee-jerk. That said, the surpass of the May high at 104.53 (May 30) should put a potential visit to the key 200-day SMA, today at 105.65, back on the radar prior to the 2023 top of 105.88 (March 8).

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

DXY daily chart