USD Index Price Analysis: Decent contention emerges at 103.50

• DXY surrenders part of Wednesday’s sharp uptick north of 105.00.
• The March low near 103.50 should hold the downside so far.

DXY gives away some of Wednesday’s sharp gains and retreats to the 104.50 region on Thursday.

If bulls regain the upper hand, then the index could dispute the so far 2023 high at 105.88 (March 8) in the short-term horizon ahead of the key 200-day SMA, today at 106.64.

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

DXY daily chart