US Dollar Index Price Analysis: Extra gains likely above 96.50

• DXY fades Thursday’s modest advance and retests 96.00.
• If bulls wake up, then the next target comes near 96.50.

DXY alternates gains with losses at/above the 96.00 yardstick ahead of the key US Nonfarm Payrolls on Friday.

If the buying interest gathers impulse, the index should initially target the area of YTD highs near 96.50 to allow for further gains to 96.90 (December 15) and the 2021 peak at 96.93 (November 24).

In the meantime, while above the 4-month support line (off September’s low) around 95.00, further upside in DXY is likely. Looking at the broader picture, the longer-term positive stance remains unchanged above the 200-day SMA at 93.06.

DXY daily chart