• DXY trades on the defensive for the second session in a row.
• Further advance is likely beyond the 2023 high near 105.90.

DXY adds to Thursday’s daily decline and challenges the 105.00 neighbourhood ahead of the release of US NFP on Friday.

Despite the corrective decline, the positive outlook for the dollar appears unchanged. That said, the surpass of the YTD peak at 105.88 (March 8) should pave the way for the continuation of the uptrend to the key 200-day SMA, today at 106.62.

A convincing move beyond the latter should shift the outlook to constructive in the short-term horizon.