US Dollar Index Price Analysis: Extra decline on the cards below 105.00

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  • DXY keeps the erratic performance unchanged so far this week.
  • The resumption of the bearish mood could retest 105.00.

DXY advances modestly following the previous day’s strong pullback on Friday.

The continuation of the selling pressure could facilitate a deeper pullback to, initially, the August low near 105.00 (August 2).  This area of initial contention appears reinforced by the 55-day SMA.

The short-term constructive stance is expected to remain supported by the 6-month support line, today near 104.30.

Furthermore, the broader bullish view in the dollar remains in place while above the 200-day SMA at 99.74.