Technical analysis: The DXY has found interim
support above the ascending trendline
depicted by the black line, which has been
guiding the index higher from previous lows.
The recent bounce off this trendline suggests
that the market is not fully convinced of a
bearish scenario, despite higher
unemployment figures. If the DXY can maintain
above the trendline and breach the 104.60
resistance level, it may signal a shift towards
bullish sentiment, potentially targeting higher
levels towards 105.20. On the contrary, a break
below the trendline could reaffirm the bearish
outlook and could lead to a retest of the lower
support zone around 103.00.

Our position: We remain bearish given the
economic state, with a higher-than-expected
unemployment rate and impending NFP data. If
the index sustains its climb and breaks through
the current resistance, we might consider long
positions. However, we are prepared to
continue with our bearish strategy, especially if
the NFP data further implies economic
weakness.