USD INDEX PRICE ANALYSIS: RECOVERY NOW TARGETS THE 100-DAY SMA

DXY adds to Friday’s bounce and revisits the 102.50 region.

Further advance could see the 100-day SMA near 103.00 revisited.

The recovery in DXY gathers extra impulse and reclaims the 102.50 region following Friday’s lows around the 102.00 neighbourhood.                                                                                           

If the index manages to surpass the interim 100-day SMA around 103.00 it could see its selling pressure mitigate somewhat in the short-term horizon.

Looking at the broader picture, while below the 200-day SMA at 105.25 the outlook for the index is expected to remain negative.