US Dollar Index Price Analysis: Extra side-lined trading looks likely

• DXY extends its consolidation in the upper end of the recent range.
• Immediately to the upside comes the 2022 peak near 104.20.

DXY comes under some selling pressure and drops well below the 104.00 mark on Wednesday.

According to the recent price action, the index could face some consolidation in the very near term. The break above this theme could open the door to a visit to the 19-year high at 104.18 (May 9) prior to the round level at 105.00, which precedes 105.63 (December 11 2002 high).

The current bullish stance in the index remains supported by the 8-month line around 97.00, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.15.

DXY daily chart