USD Index Price Analysis: Still scope for a drop to 100.80

• DXY erodes the initial bull run to the area just above 102.00.
• Next on the downside emerges the YTD low around 100.80.

DXY comes under pressure and returns to the negative territory after briefly trespassing the 102.00 barrier on Thursday.

The bearish sentiment around the dollar remains well and sound and this could force the index to retest the so far April low at 101.43 (April 5) in the near term. The loss of this level could pave the way for a deeper decline to the 2023 low around 100.80 (February 2).

Looking at the broader picture, while below the 200-day SMA, today at 106.50, the outlook for the index is expected to remain negative.

DXY daily chart