US Dollar Index Price Analysis: Further drop could retest 97.70

• DXY extends the corrective downside to the sub-100.00 area.
• The 97.70 region is expected to offer strong contention.

DXY retreats for the second session in a row and revisits the area below the key 100.00 mark on Thursday.

Price action around the index continues to favour extra weakness. Against that, the dollar’s decline could extend to the late-March lows in the 97.70 area, where decent contention is predicted to emerge.

The current bullish stance in the index remains supported by the 7-month line near 96.60, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.41.

DXY daily chart