USD Index Price Analysis: Recovery appears capped by 114.77
- DXY reverses recent weakness and reclaims 112.00 and above.
- Further upside pressure keeps targeting the YTD high near 114.80.
DXY advances moderately beyond the 112.00 hurdle following two consecutive daily pullbacks at the end of the week.
The index retreated from recent extreme overbought levels and seems to have met some contention around 111.50 so far. The continuation of the ongoing rebound could see the 2022 peak at 114.77 (September 28) revisited.
The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.20.
In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.45.
