USD Index Price Analysis: A test of the May top near 104.80 is still likely

• DXY reverses the negative price action seen at the beginning of the week.
• Extra recovery could see the May high around 104.80 revisited.

DXY manages to regain some composure following Monday’s retracement and revisits the 104.20 region on Tuesday                                                                                             

Considering the current price action, another visit to the May peak of 104.79 (May 31) should remain on the table in the relatively near term. From here, the index could target the minor hurdle at the round level of 105.00 ahead of the crucial 200-day SMA, today at 105.53.

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

DXY daily chart