US Dollar Index Price Analysis: Corrective downside could test 107.47

• DXY comes under pressure after hitting new highs on Thursday.
• Further decline could revisit the minor support at 107.47 (July 13).

DXY trades on the defensive as investors seem to be cashing up part of the recent strong gains in the dollar.

While further upside in the dollar remains in store in the short-term horizon, the current overbought condition carries the potential to meet an initial contention at 107.47 (low July 13) prior to the June top at 105.78 (June 15).

As long as the index trades above the 5-month line near 103.20, 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 98.80.

DXY daily chart