US Dollar Index Price Analysis: A deeper pullback appears likely

• DXY sheds further ground and breaks below 104.00.
• The continuation of the corrective decline could revisit 102.30.

DXY breaches the 104.00 support and drops to new 2-week lows in the 103.20 region on Tuesday.

Against that, further retracements remain well on the cards and could now target the next support at 102.35 (May 5 low), where decent contention is expected to emerge.

The current bullish stance in the index remains supported by the 3-month line around 100.00, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.39.

DXY daily chart