US Dollar Index Price Analysis: DXY bulls cheer bounce off 93.40-35 key support

• DXY bulls keep reins following the heaviest daily jump since mid-June.
• 50-DMA, five-month-old support line joins firmer Momentum to challenge bear’s entry.
• 61.8% FE lures buyers, August month’s peak acts as short-term support.

US Dollar Index (DXY) defends Friday’s heavy run-up beyond 94.00, up 0.05% around 94.20 during Monday’s Asian session.

The greenback gauge jumped the most in 4.5 months the previous day following its bounce off 50-DMA and an ascending support line from June. Also backing the DXY bulls is the firmer Momentum line.

Hence, the US Dollar Index seems ready to challenge the yearly top surrounding 94.55 during the further upside.

However, a 61.8% Fibonacci Expansion (FE) of September-October upside, followed by the latest pullback to 93.27, around 94.90 will challenge the DXY buyers afterward.

Meanwhile, the 94.00 threshold and August month’s high near 93.70 can test the short-term bears before directing them to the 93.40-35 support confluence including 50-DMA and the multi-day-old support line.

In a case where the DXY bears manage to conquer the 93.35 level on a daily closing basis, tops marked during July and early September, respectively near 93.20 and 92.90, can act as buffers during the anticipated fall to September’s low of 91.94.

US Dollar Index: Daily chart

Trend: Further upside expected