USD Index Price Analysis: Immediately to the upside comes 114.00

• DXY loses the grip and trades close to the 111.00 region.
• The resumption of the bullish stance should target 114.00.

DXY adds to Tuesday’s drop and threatens to challenge the key 111.00 neighbourhood ahead of the FOMC event on Wednesday.

Despite the current knee-jerk, the near-term bullish prospect in the dollar remains unchanged while above the 9-month support line, today near 108.80. The proximity of the 100-day SMA also reinforces this area of contention.

That said, the immediate target emerges at the 114.00 zone ahead of the 2022 high at 114.78 (September 28).

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 104.30.

DXY daily chart