USD Index Price Analysis: Another visit to 105.30 stays on the cards
- DXY adds to Tuesday’s pessimism and breaches 107.00.
- Extra weakness could force the index to drop to the 105.30 area.
DXY remains offered and briefly tests the 106.80 region, or 3-day lows, on Wednesday.
In case the selling pressure accelerates, the dollar could shed further ground and dispute the November low at 105.34 (November 15). This area of contention appears underpinned by the proximity of the always relevant 200-day SMA, today at 105.22
While above the 200-day SMA, the outlook for the index should remain constructive.