US Dollar Index Price Analysis: A deeper pullback should not be ruled out

• DXY reclaims ground lost and approaches 102.00.
• Further downside remains on the cards in the near term.

DXY manages to regain some composure and rebounds to the upper-101.00s following three consecutive daily drops on Tuesday.

The index remains under pressure and extra losses should not be ruled out for the time being. That said, further decline is expected to target the temporary 55-day SMA, today at 101.16, ahead of the 3-month line around 100.80.

Looking at the longer run, the outlook for the dollar is seen constructive while above the 200-day SMA at 96.85.

DXY daily chart