US Dollar Index Price Analysis: Some technical correction should not be ruled out

• DXY records new highs just above the 102.00 yardstick on Tuesday.
• Extra gains could see the 2020 high near 103.00 retested.

The upside bias in the dollar remains unabated and pushes DXY to record fresh highs in levels last traded back in March 2020 above the 102.00 barrier on Tuesday.

The ongoing intense upside has just entered the overbought territory – as per the daily RSI above 70 - and this could be the prologue to a potential technical correction in the short-term horizon. The underlying bullish bias, however, remains intact and still targets the 2020 high at 102.99 (March 20).

The current bullish stance in the index remains supported by the 7-month line near 96.70, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.55.

DXY daily chart