US Dollar Index Technical Analysis: immediate target aligns at the 200-day SMA above 97.40

• The recent breakdown of the critical 200-day SMA has left the index exposed to extra downside in the short-term.
• If this breach becomes convincing, then the outlook on the buck should shift to bearish (from constructive) and the next target should emerge at the monthly low at 97.14 (October 18) ahead of the 97.00 neighbourhood.
• Above the 200-day SMA, DXY should regain upside pressure and attempt a move to last week’s top at 98.00.

DXY daily chart