US Dollar Index Price Analysis: Further consolidation likely ahead of extra gains

• DXY fades the post-FOMC sharp pullback and approaches 107.00.
• Extra range bound seems probable for the time being.

DXY bounces off the 106.00 neighbourhood and manages to reverse Wednesday’s strong retracement on Thursday.

So far, the prevailing side-lined trading looks well contained by the 106.00 neighbourhood. If the index breaks above this pattern it could then attempt a move to the 2022 high near 109.40 (July 14). Bouts of extra weakness in the dollar carries the potential to drag the index to the 55-day SMA at 104.71.

The near-term outlook for DXY is seen constructive while above the 5-month support line near 103.90.

In addition, the broader bullish view remains in place while above the 200-day SMA at 99.38.

DXY daily chart