Bank of America Merrill Lynch FX Strategy Research sees encouraging signs for the DXY provided it remains above the 50m SMA going forward.
"Price action during August and September 2017 resulted in the DXY declining to test and close above the the 50m SMA. Each month ended with a small percent change on the month despite intermonth swings.
September's low fulfilled a 38.2% retracement at 91.16 (low of 91.01). RSI remains just above 40, which is often an oversold level in an uptrend," BofAML adds.
...A decline below the 50m SMA could lead to the 50% fib at 87.25," BofAML argues.