USD Index Price Analysis: Further upside looks likely

• DXY comes under some selling pressure following new YTD highs.
• Extra upside continues to target the 200-day SMA.

DXY gives away part of recent gains to the vicinity of the 106.00 mark, or new 2023 peaks.

The continuation of the rebound in the dollar seems like for the time being. The breakout of the round level at 106.00 should put the index en route to a probable test of the key 200-day SMA, today at 106.60.

A convincing move beyond the latter should shift the outlook to constructive in the short-term horizon and allow for the continuation of the uptrend.

DXY daily chart