USD Index Price Analysis: Decent support emerges around 101.50

• The index rebounds after dropping to multi-month lows at 101.50.
• The dollar’s negative outlook remains unchanged below 106.50.

DXY manages to regain some composure and bounces off earlier 8-month lows in the mid-101.00s on Thursday.

Despite the rebound, the index remains well under pressure and a sustainable breach of the 101.50 level should accelerate losses to, initially, the May 2022 low around 101.30 (May 30) prior to the psychological 100.00 yardstick.

On the upside, the so far weekly high at 102.89 (January 18) is expected to offer minor resistance.

In the meantime, while below the 200-day SMA at 106.47, the index is expected to risk extra losses.

DXY daily chart