US Dollar Index Price Analysis: A test of the 2021 remains on the cards

• DXY gives away part of the recent gains on Wednesday.
• Immediately to the upside comes the weekly top near 96.50.

DXY deflated somewhat after hitting new tops around 96.50 on Tuesday.

Next on the upside now emerges 96.46 (January 4) and a break of this level should put a test of the 2021 high at 96.93 (November 24) back on the radar just before the round level at 97.00.

In the meantime, while above the 4-month support line (off September’s low) around 94.90, the constructive view in DXY should remain unchanged. In addition, the broader positive stance stays underpinned by the 200-day SMA at 93.02.

DXY daily chart