USD Index Price Analysis: Extra range bound appears likely

• DXY gives away part of Friday’s strong advance and returns below 113.00.
• The index appears to have moved into a 112.00-114.00 consolidation.

DXY comes under moderate selling pressure and slips back to the sub-113.00 region on Monday.

The index looks poised to navigate within a 112.00-114.00 range at least in the very near term, namely the next FOMC event.

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 8-month support line near 108.00.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 103.35.

DXY daily chart