• US Dollar Index gains traction to around 101.25 in Wednesday’s early European session. 
• The DXY keeps the bearish outlook below the key 100-day EMA, but the RSI shows neutral momentum. 
• The initial support level is seen at 100.68; the first upside barrier is located at 101.30. 

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.