USD Index Price Analysis: Positive outlook remains above the 200-day SMA

The index comes under pressure and fades part of the recent advance.
The underlying bullish view is underpinned by the 200-day SMA.

Pablo Piovano FXStreet

Sellers now put the recent upside momentum in DXY to the test and force it to return to the negative territory after three daily gains in a row on Wednesday.

In the meantime, the index manages to put some distance from the always relevant 200-day SMA, today at 105.47.

A drop below this region is expected to shift the outlook to negative and at thus allow for losses to accelerate to, initially, the August low at 104.63 (August 10).

DXY daily chart

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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