USD Index Price Analysis: Immediately to the downside comes the 200-day SMA

• DXY adds to Tuesday’s decline and breaches 106.00 once again.
• The next support of note now comes at the 200-day SMA near 105.00.

DXY remains under pressure and maintains the trade in the area of multi-month lows around 106.00 midweek.

If the selling bias gathers extra pace, then the index could dispute the critical 200-day SMA, today at 104.94. The loss of this important support region could put a potential drop to the August low at 104.63 (August 10) back on the radar.

Below the 200-day SMA, the dollar’s outlook should shift to negative.

DXY daily chart