US Dollar Index Price Analysis: Further range bound in store

• DXY resumes the upside and retargets 110.00.
• The lack of direction could extend until the FOMC event.

DXY leaves behind two daily pullbacks in a row and refocuses the attention to the 110.00 region on Tuesday.

Despite the ongoing consolidation, the dollar’s short-term bullish view remains unchanged while above the 7-month support line near 106.60. Against that, extra side-lined trading could extend further ahead of the FOMC event on Wednesday, although another bull run to the YTD peak around 110.80 remains well on the cards for the time being.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 101.80.

DXY daily chart