USD Index Price Analysis: A drop to the 200-day SMA cannot be ruled out

• DXY breaks below the 106.00 support to clinch new multi-month lows.
• Immediately to the downside now emerges the 200-day SMA.

DXY quickly fades Monday’s bull run and refocuses on the downside, breaking below the 106.00 mark for the first time since mid-August.

If the selling bias gathers extra pace, then the index could dispute the critical 200-day SMA, today at 104.89.

Below this region, the dollar’s outlook should shift to negative.

WANT DIRECT TALK TO OUR EXPERTS CONTACT THE LEARNING ART

 USD Index Price Analysis: Further upside seen above 114.00

• DXY reclaims part of the ground lost and advances to 2-day highs.
• The surpass of the 114.00 region could pave the way for extra gains.

DXY sets aside two daily pullbacks in a row and extends further the recent breakout of the 112.00 barrier on Wednesday.

So far, the index looks poised to keep navigating within a 112.00-114.00 range at least until the next FOMC event. In case bulls break above the 114.00 region, gains could then accelerate to the 2022 peak near 114.80.

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 8-month support line near 108.10.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 103.52.

WANT DIRECT TALK TO OUR EXPERTS CONTACT MONEY LIFE RESEARCH