US Dollar Index Price Analysis: Upside remains capped by 91.60

• DXY regains some attention following Tuesday’s pullback.
• Bullish attempts stay limited around 2021 highs near 91.60.

DXY failed to move further north of the 91.00 mark on a more serious note on Wednesday, retreating to the negative territory after clinching multi-week peaks in the 91.35/40 band.

A surpass of the latter, ideally in the near-term, carries the potential to spark a visit to the 2021 tops in the 91.60 zone (February 5), where the index is expected to meet a tough barrier.

In spite of the strong rebound, the current spike in DXY is deemed as corrective only, as the broader bearish view still weighs on the dollar. If the 91.60 region is surpassed, then the next focus of attention should shift to the Fibo level (of the 2020-2021 drop) at 92.46.

In the longer run, as long as DXY trades below the 200-day SMA (93.00), the negative stance is expected to persist.

DXY daily chart