US Dollar Index Price Analysis: Another drop to 105.00 appears likely
|- DXY comes under further downside pressure near 106.00.
- Extra weakness could see the 105.00 zone retested near term.
DXY retreats for the third session in a row and challenges once gain the 106.00 neighbourhood ahead of the release of US inflation figures.
If the selling bias picks up extra pace, the dollar risks a deeper pullback to, initially, the August low near 105.00 (August 2). This area of initial contention appears reinforced by the 55-day SMA, today at 105.19.
The short-term constructive stance is expected to remain supported by the 6-month support line, today near 104.50.
Furthermore, the broader bullish view in the dollar remains in place while above the 200-day SMA at 99.93.
DXY daily chart
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