US Dollar Index Price Analysis: Further gains could see 108.74 retested

• DXY comes under further pressure below the 108.00 mark.
• Extra advances could meet the next target at 108.74.

DXY deflates further following Tuesday’s cycle highs near 108.60 on Wednesday.

Further upside in the dollar remains in store in the short-term horizon. That said, once the 2022 high is cleared, the index could attempt a move to the October 2002 peak at 108.74.

As long as the index trades above the 5-month line near 103.06, the near-term outlook for DXY should remain constructive.

In addition, the broader bullish view remains in place while above the 200-day SMA at 98.66.

Of note, however, is that the index still trades in the overbought territory and it therefore could extend the corrective decline to, initially, the 105.80 region (high June 15).

DXY daily chart