US Dollar Index Price Analysis: Further decline below 200-day SMA

• The index resumes the downtrend and revisits the 105.30 zone.
• The loss of the 200-day SMA opens the door for further losses.

The Dollar Index (DXY) comes under additional selling pressure and prolongs the break of the key 106.00 barrier at the start of the week.

Selling pressure prompts the index to flirt with the ever-relevant 200-day SMA, today at 105.36. A drop below the latter is expected to accelerate losses and target the August low at 104.63 (August 10).

Below the 200-day SMA, the outlook for the index should shift to bearish.

DXY daily chart