US Dollar Index Price Analysis: Bets for a near-term correction on the rise

• DXY clinches multiyear peaks above the 103.00 mark.
• Further gains now target the 2017 high at 103.82.

Tracked by the DXY, the greenback trades in fresh multi-year peaks north of the 103.00 mark midweek.

The intense upside pushed the index into the overbought territory – as per the daily RSI near 80 - and this could be the prologue to a potential technical correction in the short-term horizon. The underlying bullish bias, however, remains intact and now targets the 2017 high at 103.82 (January 3).

The current bullish stance in the index remains supported by the 7-month line near 96.70, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.60.

DXY daily chart