USD Index Price Analysis: A tough resistance zone remains around 104.50

• DXY gives away part of the recent two-day advance on Monday.
• Bulls continue to target the 104.50 region in the near term.

DXY partially surrenders the sharp uptick seen in the second half of last week and challenges the key 104.00 neighbourhood on Monday.

If bulls regain the upper hand, the index should shift its focus to another visit to the monthly peak of 104.44 (August 25) just before the May top of 104.69 (May 31). The breakout of this level could prompt a probable test of the 2023 high at 105.88 (March 8) to re-emerge on the horizon.

While above the key 200-day SMA, today at 103.04, the outlook for the index is expected to remain constructive.

DXY daily chart