US Dollar Price Forecast: The bearish vibe prevails below 101.50

The US Dollar Index (DXY) extends the rally to near 101.25 during the early European session on Wednesday. The cautious mood in the market amid the escalating tension in the Middle East and reduced bets for 50 basis points (bps) by the Federal Reserve (Fed) rate cut in November might underpin the DXY in the near term. 

According to the daily chart, the negative outlook of the DXY remains intact as the index remains below the key 100-day Exponential Moving Average (EMA). However, further consolidation looks favorable as the Relative Strength Index (RSI) hovers around the midline, indicating the neutral momentum for the DXY. 

The first downside target for the US Dollar emerges at 100.68, the low of October 1. Further south, the next contention level is located at 100.23, the lower limit of the Bollinger Band. The crucial support level to watch is the 100.00 psychological level. 

On the upside, the upper boundary of the Bollinger Band at 101.30 acts as an immediate resistance level for DXY. A decisive break above this level will expose 101.84, the high of September 12. Extended gains will see a rally to 102.73, the 100-day EMA.