USD Index Price Analysis: Corrective decline could retest102.00

• DXY comes under pressure and returns to the sub-103.00 area.
• Further weakness could revisit recent lows around 102.00.

DXY fades part of the recent 2-day advance and slips back to the area below the 103.00 hurdle at the beginning of the week.                                                                

Despite the ongoing rebound, the index could still face headwinds on its way up. That said, there is still room for the index to revisit June lows in the 102.00 region, while a sustainable breach of this level could expose a deeper decline to April/May lows near 101.00. Dow from here emerges the 2023 low around 100.80 recorded on April 14.

Looking at the broader picture, while below the 200-day SMA at 105.07 the outlook for the index is expected to remain negative.

DXY daily chart