US Dollar Index Price Analysis: DXY keeps bounce off key support near 94.00

• DXY remains firmer, extends the previous day’s recovery moves.
• Sustained U-turn from 50-SMA, late August tops and a three-week-old support line favor bulls.
• Weekly horizontal line guards immediate upside before the yearly top.

US Dollar Index (DXY) bulls keep reins, picking up bids to 94.02 during early Wednesday.

In doing so, the greenback gauge justifies the previous day’s rebound from the key support zone comprising August month’s top and an ascending support line from mid-September, not to forget 50-SMA.

Given the firmer RSI backing the latest recovery moves from an important support area, DXY is likely to rise further towards a one-week-old resistance line near 94.15 ahead of challenging the yearly peak, marked the last month, around 94.50.

During the quote’s upside past 94.50, the September 2020 peak of 94.74 will be crucial to watch.

Meanwhile, pullback moves will be initially challenged by a convergence of 50-SMA and the short-term support line close to 93.80.

Also acting as a short-term important support is the 93.68-73 zone comprising the latest low and August month’s high.

In a case where the US Dollar Index drops below 93.68, the 93.50 and the late September’s low near the 93.00 threshold will be in focus.

DXY: Four-hour chart

Trend: Further upside expected