• DXY manages to regain some composure and tests 104.70.
• Further range bound trade looks likely for the time being.

DXY trades within a narrow range at in the mid-104.00s at the beginning of the week.

So far, the continuation of the range bound theme seems the most likely scenario in the very near term for the index. In the meantime, the dollar needs to clear the February peak at 105.35 (February 27) to allow for extra recovery and a potential challenge of the 2023 top at 105.63 (January 6).

In the longer run, while below the 200-day SMA at 106.55, the outlook for the index remains negative.