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.

Pablo Piovano FXStreet

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

Dollar Index Spot

Overview
Today last price	106.05
Today Daily Change	38
Today Daily Change %	-0.22
Today daily open	106.28

Trends
Daily SMA20	106.79
Daily SMA50	105.38
Daily SMA100	103.38
Daily SMA200	99.82

Levels
Previous Daily High	106.41
Previous Daily Low	105.97
Previous Weekly High	107.43
Previous Weekly Low	105.54
Previous Monthly High	109.29
Previous Monthly Low	104.69
Daily Fibonacci 38.2%	106.14
Daily Fibonacci 61.8%	106.24
Daily Pivot Point S1	106.03
Daily Pivot Point S2	105.78
Daily Pivot Point S3	105.59
Daily Pivot Point R1	106.47
Daily Pivot Point R2	106.66
Daily Pivot Point R3	106.91

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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