US Dollar Index Price Analysis: The 111.00 level is just around the corner

• DXY advances further and flirts with the 111.00 region.
• The FOMC event will put the ongoing bull run to the test.

DXY extends the auspicious start of the week and prints new 20-year highs just below the 111.00 mark on Wednesday.

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 106.70. That said, the surpass of the 2022 peak at 110.86 (September 21) should expose a quick move to the 111.00 barrier.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 101.87.

DXY daily chart