USD Index Price Analysis: Beware of the technical correction

DXY rises to new 2023 highs near 106.50 on Wednesday.
Current overbought conditions could spark a knee-jerk.

Pablo Piovano FXStreet

DXY accelerates its upside and reaches new YTD peaks near 106.50 on Wednesday.

Considering the ongoing price action, extra gains appear likely for the time being. Further up now comes the weekly high at 107.19 (November 30, 2022) prior to another weekly peak at 107.99 (November 21 2022).

However, the current overbought conditions of the index could favour some near-term corrective move.

In the meantime, while above the key 200-day SMA, today at 103.07, the outlook for the index is expected to remain constructive.

DXY daily chart

Dollar Index Spot

Overview
Today last price	106.38
Today Daily Change	32
Today Daily Change %	0.20
Today daily open	106.17

Trends
Daily SMA20	104.91
Daily SMA50	103.48
Daily SMA100	103.13
Daily SMA200	103.07

Levels
Previous Daily High	106.26
Previous Daily Low	105.86
Previous Weekly High	105.78
Previous Weekly Low	104.66
Previous Monthly High	104.44
Previous Monthly Low	101.74
Daily Fibonacci 38.2%	106.11
Daily Fibonacci 61.8%	106.02
Daily Pivot Point S1	105.94
Daily Pivot Point S2	105.7
Daily Pivot Point S3	105.54
Daily Pivot Point R1	106.34
Daily Pivot Point R2	106.5
Daily Pivot Point R3	106.73

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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