USD Index Price Analysis: Initial support emerges around 111.50

• DXY adds to Friday’s recovery attempt and advances past 112.00.
• Bulls continue to target the 2022 peak near 114.80 near term.

DXY extends the ongoing bull run to the 112.50 zone at the beginning of the week.

The index retreated from recent extreme overbought levels and seems to have met some decent contention near 111.50 so far. If the recovery picks up extra pace the index could see the 2022 high at 114.77 (September 28) revisited in the short-term horizon.

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.20.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.53.

DXY daily chart