Bank of America Global Research discusses the USD Index (DXY) technical outlook and sees a scope for USD recovery in May.

"The DXY has traded mostly sideways since the April 13th “bear trap” and April 25th “bullish reversal”. While the DXY remains supported (lower lows rejected by two impulsive up days), we lean in favor of some long USD ideas for the next 2-3 weeks," BofA notes.

"For example, euro while below 1.11, USDSEK while above 10.20 and USDKRW +1m NDF while above 1310. If DXY breaks below 100.79, the range support will have broken to extend downside to 98.98 and the mid-96s and tactical USD longs would be stopped," BofA adds.