US Dollar Index Price Analysis: Further consolidation likely ahead of FOMC

• DXY keeps the choppy performance so far on Friday.
• Next on the upside comes the 2022 high past 109.00.

DXY fades the earlier bull run to the 107.30/35 band, although it keeps the decent gains around 106.80 at the end of the week.

Considering the ongoing price action, the index remains poised for further consolidation, at least until the key FOMC event due on July 27, where the Federal Reserve is expected to tighten the interest rates by another 75 bps.

In the meantime, as long as the index trades above the 5-month line near 103.60, the near-term outlook for DXY should remain constructive.

In addition, the broader bullish view remains in place while above the 200-day SMA at 99.12.

DXY daily chart