• DXY comes under further selling pressure and revisits 104.30.
• Next on the downside comes the post-FOMC low around 102.30.

DXY extends the corrective decline, as the dollar exits the overbought territory at the beginning of the week.

Against that, further retracements remain well on the cards and initially target the minor support at 103.37 (low May 11). The breach of this area could force the index to drop further and visit 102.35 (May 5 low), where decent contention is expected to emerge.

The current bullish stance in the index remains supported by the 8-month line around 97.15, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 96.34.

DXY daily chart