US Dollar Index Technical Analysis: Next target emerges at 98.50

• The move up in DXY is once again flirting with the 98.00 region.
• Immediately above aligns the monthly peaks in the mid-98.00s.

The index is now navigating the area of weekly highs at/around the key 98.00 handle. The gradual recovery from recent lows is also testing the 10-day and 100-day SMAs just above 98.00 the figure.

Immediately to the upside now emerges the 55-day at 98.23. Further up is located the 98.50 region, or monthly highs. A sustainable break of this hurdle should pave the way for a move to 99.00 and beyond.

In the meantime, as long as the 200-day SMA at 97.57 holds the downside, the constructive outlook on DXY is seen unchanged.