USD Index Price Analysis: Outlook is expected to shift to negative below 103.60
|- DXY comes under extra pressure and challenges the 200-day SMA.
- The index risks sustained losses if 103.60 is breached in a convincing fashion.
DXY adds to Friday’s decline and drops to levels last seen in early September around 103.50 on Monday.
In case bears push harder, the breakdown of the November low of the 200-day SMA at 103.61 should leave the door open to further retracements in the short-term horizon. That said, the next support emerges at the weekly low of 102.93 (August 30) prior to the psychological 100.00 threshold.
In the meantime, while below the key 200-day SMA, the outlook for the index is expected to shift to bearish.
DXY daily chart
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