USD Index Price Analysis: Another drop to 110.00 stays in the pipeline
- DXY recedes modestly to the 112.00 region on Friday.
- Losses could gather pace and attempt another test of 110.00.
DXY comes under some tepid selling pressure after two consecutive sessions with gains at the end of the week.
The index faces an immediate risk with the release of the Nonfarm Payrolls. A negative surprise could encourage sellers to return to the market and drag the dollar to the area of recent lows in the proximity of the 110.00 mark.
On the upside, there is still scope for a move to the 2022 high near 114.80 (September 28).
The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.50.
In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.84.