USD Index Price Analysis: Further upside in store

• The index treads water around the 104.00 region on Monday.
• Further advance could revisit the 2023 high near 105.60.

DXY trades within a tight range near Friday’s closing levels in the sub-104.00 zone.

The ongoing price action favours the continuation of the uptrend for the time being. Further bouts of strength are now expected to put a potential test of the 2023 top at 105.63 (January 6) back on the investors’ radar in the not-so-distant future.

In the longer run, while below the 200-day SMA at 106.44, the outlook for the index remains negative.

DXY daily chart