USD Index Price Analysis: Upside bias unchanged above 108.50

• DXY regains some balance after bottoming out near 109.50.
• The 108.50/40 band continues to hold the downside so far.

DXY picks up pace and rebounds from earlier multi-week lows near the 109.50 zone on Thursday.

Despite the dollar remains under pressure, the likelihood of further gains remains on the table while above the 8-month support line near 108.50. The proximity of the 100-day SMA (108.40) also reinforces this area of contention. Below this zone, the downside pressure in the dollar is predicted to gather extra steam.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 103.99.

DXY daily chart