USD Index Price Analysis: Decent support emerges around 106.00

• DXY picks up upside traction and reverses two daily pullbacks in a row.
• The continuation of the rebound targets the 106.80 region.

DXY leaves behind the pessimism seen in the first half of the week and revisits the low-106.00s on Wednesday.

In case the bullish impulse accelerates, 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 103.25, the outlook for the index is expected to remain constructive.

DXY daily chart