USD Index Price Analysis: Further consolidation could be in the pipeline
|- DXY gives away part of the strong gains recorded on Wednesday.
- The continuation of the range bound theme looks likely.
DXY trades on the defensive and returns to the low-111.00s on Thursday.
Despite the ongoing correction, the index could move into a consolidative phase in the next hours ahead of the key Nonfarm Payrolls due on Friday.
In the meantime, the breach of the 110.00 yardstick should open the door to a probable visit to the weekly low at 109.35 (September 20), while the YTD high near 114.80 emerges as the big magnet for bulls.
The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.50.
In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.75.
DXY daily chart
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