USD Index Price Analysis: A drop to 101.00 appears in store

• DXY remains under pressure and briefly pierces 102.00.
• Extra losses could see the 101.00 zone revisited in the near term.

DXY now regains some composure following the earlier pullback to the sub-102.00 region, or new multi-week lows, on Thursday.                                                                                           

Despite the ongoing rebound, the index remains well under pressure. That said, there is the palpable probability that a deeper pullback could drag DXY to the area of lows seen in April and May around 101.00. Dow from here emerges the 2023 low around 100.80 recorded on April 14.

Looking at the broader picture, while below the 200-day SMA at 105.14 the outlook for the index is expected to remain negative.

DXY daily chart