US Dollar Index Price Analysis: Near-term correction due?

• DXY extends the move well north of the 93.00 yardstick.
• The continuation of the upside now targets 94.00.

DXY keeps the positive note well in place and extends the rally to the 93.70 area, new 2021 highs.

The index has quickly left behind the initial barrier in the mid-93.00s and now shifts its focus to the round level at the 94.00 mark in the short-term. However, DXY has recently entered the overbought territory, indicative that a potential correction lower could be in the offing in the near term.

In the meantime, and looking at the broader scenario, the positive stance on the dollar is expected to remain unchanged as long as the index trades above the 200-day SMA, today at 91.31.

DXY daily chart