US Dollar Index Price Analysis: A test of the 200-day SMA gathers traction

• DXY extends the leg lower to the 98.00 area, 3-week lows.
• The key 200-day SMA at 97.83 is the next key target on the downside.

DXY remains on the defensive so far this week, extending the pullback further to sub-99.00 levels after failing to test the 100.00 mark during last week.

After breaking below some interim supports at Fibo retracements, the index appears to have met decent contention around the 98.00 neighboourhood.

If the selling impetus picks up extra pace, a near-term visit to the 200-day SMA near 97.80 should look increasingly likely.

DXY daily chart