Lack of direction points to some side-lined trade

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• DXY fades Tuesday’s uptick and returns to the sub-104.00 region
• Further choppiness seems probable in the near term .

DXY leaves behind Tuesday’s decent gains and resumes the downside below the key 104.00 support on Wednesday.                                                                                             

Considering the ongoing price action, the index could now move into a consolidative phase in light of the current lack of strong catalysts. On the downside, the June low of 103.38 (June 2) emerges as the immediate contention, while the next up-barrier is seen at the May peak of 104.79 (May 31).

Looking at the broader picture, while below the 200-day SMA at 105.51 the outlook for the index is expected to remain negative.

DXY daily chart