DXY comes under pressure soon after hitting tops above 102.00.
The downside pressure looks mitigated above the 102.60 area.
DXY now sees its earlier gains trimmed after climbing to fresh peaks just past 102.00 the figure on Friday.
Despite the ongoing knee-jerk, the index appears poised to extend the recent recovery. That said, the next target emerges at the transitory 55-day SMA at 102.57. The surpass of this region should alleviate the downside bias in the dollar and allow for extra gains.
Looking at the broader picture, while below the 200-day SMA at 103.78 the outlook for the index is expected to remain negative.
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