US Dollar Index Price Analysis: Extra decline remains in store

• DXY regains upside traction and advances beyond 102.00.
• Further downside could retest 101.65 near term.

The dollar regains the smile and encourages DXY to reclaim the area beyond the 102.00 mark on Wednesday.

The index remains under scrutiny and therefore extra losses should not be ruled out for the time being. Against that, a breakdown of the May low at 101.64 (May 24) could pave the way for a visit to the temporary 55-day SMA, today at 100.97 in the short-term horizon.

Looking at the broader picture, the current bullish stance in the index remains supported by the 3-month line around 100.40, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.68.

DXY daily chart