USD Index Price Analysis: Immediately to the upside comes 106.80

• DXY reverses Monday’s negative performance and retests 106.50.
• Further gains could see the 106.80 area revisited in the near term.

DXY manages to regain balance and advance to the 106.50 region on Tuesday.

Considering the ongoing price action, the surpass of the weekly high of 106.78 (October 12) could encourage the index to embark on a potential test of the 2023 top of 107.34 (October 3) in the short-term horizon.

In the meantime, while above the key 200-day SMA, today at 103.23, the outlook for the index is expected to remain constructive.

DXY daily chart