US Dollar Index Price Analysis: Initial support seen around 92.50

• DXY gives away part of the recent advance.
• Further downside should be contained around 92.50.

DXY eases some ground after two consecutive daily advances and another failed attempt to move above 93.00 during early trade.

Further rangebound around current levels is likely ahead of the key FOMC event on Wednesday. On the upside, there is an interim hurdle at the monthly tops near 93.20 (July 21) ahead of the 2021 high in the mid-93.00s.

In the meantime, and looking at the broader scenario, the positive stance on the dollar is expected to remain unchanged as long as the index trades above the 200-day SMA, today at 91.35.

The index, however, is navigating the boundaries of the overbought territory, which could spark some correction in the not-so-distant future.

DXY daily chart