US Dollar Index Price Analysis: Potential correction ahead of further upside

• DXY fades the initial spike to fresh tops in the 92.50/55 band.
• Overbought levels could sponsor a transitory leg lower.

DXY’s upside momentum appears to have run out of steam in the 92.50 area, or new 3-month peaks, on Thursday.

If the buying impulse gathers extra steam, then there are no relevant hurdles until the so far YTD tops in the mid-93.00s (March 31). Further north comes in the November 2020 high near 94.30.

In the meantime, and looking at the broader scenario, the outlook for the dollar is seen constructive while above the 200-day SMA (91.44).

DXY daily chart