Bank of America Global Research discusses the USD Index (DXY) technical outlook and sees a scope for a USD snapback higher over the coming weeks.

"Signals in February suggested a bullish USD snapback could follow and it did until the banking crisis reversed it in mid-March. Last Friday (April 14) the DXY failed to sustain a bearish breakdown. It traded to a modest new low (100.79 vs 100.82) and then rallied above Thursday's high. This was similar to the "bear trap" pattern on Feb 2, 2023 that preceded a 3.8% DXY rally," BofA notes. 

"While Friday's "bear trap bullish reversal day" low holds, a repeat snapback rally may follow and a bullish wedge could form. However, another selloff where the decline is sustained will begin to favor targeting the low 96s," BofA adds.