USD Index Price Analysis: Downside pressure alleviated above 103.50

• DXY comes under some selling pressure and tests 102.90.
• Extra gains meet the next target near 103.50.

DXY attempts a decent recovery following Friday’s post-Payrolls sharp retracement to the 102.20 region.

While further consolidation appears likely in the very near term, the continuation of the uptrend in place since mid-June could challenge the weekly high at 103.54 (June 30) prior to the May high at 104.69 (May 31), which appears reinforced by the 200-day SMA.

Looking at the broader picture, while below the 200-day SMA at 104.60, the outlook for the index is expected to remain negative.

DXY daily chart