US Dollar Index Price Analysis: Underlying upside momentum remains intact

• DXY rebounds from the daily knee-jerk to the 98.70 area.
• Another visit to the 2022 high remains well on the cards.

DXY trades on the defensive around the 99.00 zone at the beginning of the week.

Considering the recent price action in the dollar, further gains in the index now carries the potential to extend to the YTD high at 99.41 (March 7) followed by the 99.97 level (May 25 2020 high) and ahead of the psychological 100.00 mark.

The current bullish stance in the index remains supported by the 6-month line, today near 95.80, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 94.34.

DXY daily chart