US Dollar Index Price Analysis: Room for a deeper drop

• DXY comes under further pressure and flirts with 102.00.
• Immediately to the downside comes the 55-day SMA.

DXY extends further the leg lower and puts the 102.00 support to the test of Monday.

The index remains under scrutiny and therefore extra losses should not be ruled out for the time being. Against that, a breach of 102.00 should put the index en route to a probable visit to the 55-day SMA, today at 100.84.

Looking at the broader picture, the current bullish stance in the index remains supported by the 3-month line around 100.30, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.59.

DXY daily chart