US Dollar Index Price Analysis: Monthly support teases DXY bulls amid oversold RSI

• US Dollar Index seesaws near the lowest levels in six months.
• One-month-old descending trend line triggers repeated bounces of the DXY.
• Oversold RSI suggests corrective move but 200-day EMA appears a tough nut to crack for the bulls.

US Dollar Index (DXY) licks its wounds near the lowest levels since mid-June while taking rounds to 103.70 during early Thursday.

In doing so, the greenback’s gauge versus the six major currencies portrays the fourth bounce off the one-month-old descending support line amid the oversold RSI conditions.

 As a result, a corrective bounce toward the 50% Fibonacci retracement level of the quote’s January-September upside, near 104.70 appears more likely.

However, the 200-day EMA level surrounding 106.00 acts as a crucial challenge for the DXY bulls to tackle before taking control.

In a case where the US Dollar Index remains firmer past 106.00, the odds of witnessing a run-up towards the late November swing high near 108.00 can’t be ruled out.

Alternatively, a downside break of the aforementioned support line, near 103.50 by the press time, could quickly drag the DXY to the 61.8% Fibonacci retracement level of around 102.30.

Following that, the 102.00 round figure may offer an intermediate halt during the south-run targeting May’s low near 101.30.

Should the DXY remains bearish past 101.30, it becomes vulnerable to breaking the 100.00 psychological magnet.

DXY: Daily chart

Trend: Recovery expected