Dollar Index Price Analysis: DXY bulls eye yearly peak on double-top confirmation

• DXY take the bids to the highest levels since April.
• RSI has a gap before hitting overbought limit, signals further upside towards yearly peak.
• Convergence of 50-DMA, ascending support line from June keeps sellers away.

US Dollar Index (DXY) stays well bid around 93.32, up 0.17% intraday, while crossing the key hurdle to refresh the multi-day top amid early Thursday.

The greenback gauge ticked up beyond a monthly double-top formation the previous day but failed to provide a daily confirmation. However, the RSI remained firm afterward to pierce the 93.20 key hurdle, now support, in a clear way.

Hence, the quote is likely to extend the latest upside moves to the yearly top surrounding 93.45 but any further advances will be challenged by the likely overbought RSI conditions.

Should DXY bulls ignore RSI signals and cross the 93.50 resistance, the odds of witnessing 0.9400 on the chart can’t be ruled out.

Meanwhile, pullback moves need a daily closing below 93.20 to revisit the yearly July tops near 92.80 and the monthly low of 92.48.

Even so, the US Dollar Index bears remain cautious until the quote stays beyond 92.30 support confluence including 50-DMA and a two-month-old rising trend line.

DXY: Daily chart

Trend: Further upside expected