US Dollar Index Price Analysis: Potential consolidation lies ahead

• DXY appears side-lined in the upper end of the recent range.
• Immediately to the upside comes the YTD high near 104.20.

DXY trades without a clear direction below Monday’s 19-year highs around 104.20.

According to the recent price action, the index could face some consolidation in the very near term. The break above it could expose a test of the 2022 high at 104.18 (May 9) ahead of the round level at 105 and prior to 105.63 (December 11 2002 high).

The current bullish stance in the index remains supported by the 8-month line in the boundaries of 97.00, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.09.

DXY daily chart