USD Index Price Analysis: Solid contention appears around 110.00... for now

• DXY manages to gather some upside traction after testing 110.00.
• The loss of 110.00 exposes a potential decline to 109.35.

DXY reverses two consecutive daily retracements and bounces off fresh lows in the proximity of the 110.00 support on Wednesday.

Despite the ongoing rebound, further weakness should not be ruled out just yet. That said, the breach of the 110.00 yardstick should open the door to a probable visit to the weekly low at 109.35 (September 20).

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.40.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.67.

DXY daily chart