US Dollar Index Price Analysis: A test of 108.00 looks inevitable near term

• DXY resumes the upside and advances to new cycle peaks.
• Next on the upside comes the round level at 108.00.

DXY fades the weakness seen in the last couple of sessions and prints new nearly 2-decade tops past 107.80 on Monday.

Further upside in the dollar remains in store in the short-term horizon. That said, the continuation of the uptrend initially targets the round level at 108.00 ahead of the October 2002 top at 108.74.

As long as the index trades above the 5-month line near 102.85, the near-term outlook for DXY should remain constructive.

In addition, the broader bullish view remains in place while above the 200-day SMA at 98.52.

Of note, however, is that the index trades in the overbought territory and it therefore could extend the corrective decline to, initially, the 105.80 region (high June 15).

DXY daily chart