US Dollar Index Price Analysis: Overbought levels could spark a corrective move

• DXY climbs to new highs near 110.30 on Monday.
• A technical correction should not be ruled out.

DXY extends the march north to the vicinity of 110.30, where it seems to have met some initial resistance.

The short-term bullish view in the dollar remains well in place for the time being and propped up by the 7-month support line, today around 105.70.

However, the current overbought conditions of the index could trigger some corrective downside, which should be seen as a buying opportunity.

Still on the upside, the surpass of the recent top could face the next barrier at the weekly highs at 111.90 (June 6 2002) and 113.35 (May 24 2002).

Looking at the long-term scenario, the bullish view in the dollar remains in place while above the 200-day SMA at 101.06.

DXY daily chart