USD Index Price Analysis: Potential consolidation ahead of further gains

• DXY gives away some gains following Wednesday’s fresh tops.
• The index could embark on a consolidative phase in the near term.

DXY comes under pressure and challenges the 104.00 support on Thursday after hitting fresh multi-week peaks in the boundaries of the 104.70 zone in the previous session.                                     

The index could move into a range bound theme in the very near term ahead of the potential resumption of the uptrend. That said, the surpass of the May high at 104.69 (May 31) should put a potential visit to the key 200-day SMA, today at 105.60, back on the radar prior to the 2023 top of 105.88 (March 8).

Looking at the broader picture, while below the 200-day SMA the outlook for the index is expected to remain negative.

DXY daily chart