USD Index Price Analysis: Further consolidation appears in store
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- DXY faces further selling pressure and approaches 106.00.
- There is a strong resistance area near 107.00 so far.
DXY retreats to three-day lows in the 106.20/15 band following the rejection from the 107.00 region seen in the second half of last week.
So far, extra range bound looks the most likely scenario for the index for the time being. The breakout of this theme exposes a potential move to the weekly top at 106.89 (October 26), prior to the round level at 107.00 and just ahead of the 2023 high of 107.34 (October 3).
So far, while above the key 200-day SMA, today at 103.41, the outlook for the index is expected to remain constructive.
DXY daily chart
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