DXY (USD) seems ready to retrace some of the recent move lower. Maybe up to 97 in the next few months, which will cause some pain in most asset markets. Once there, it could find resistance and reestablish its downtrend and look to find a bottom sometime in 2023 to complete its cycle.
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DXY failed to post a new low and seems to be on track to retrace at least part of the move lower since April 2020. Targets for this bounce could be limited to the 96-98 area (fib retracement lvls and retest of uptrend) but could very well create enough pain in overextended asset markets to postpone inflation fears and guarantee renewed FED stimulus. Once DXY clears current oversold conditions with this bounce, and CB's usual response to it, DXY would be clear to continue lower to complete its 7-8yr cycle.
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DXY is taking its time, but still following the script described here 6 months ago. Still on track and moving higher for the rest of the year with a potential target north of 97.