• DXY extends the downside pressure and pierces 104.00.
• The next support comes at the 103.40 region.

DXY adds to the negative start of the week and briefly visits the area below the 104.00 support on Tuesday.

Considering the ongoing price action, further correction should not be ruled out in the short-term time frame. That said, another visit to the post-FOMC low at 103.41 (June 16) is expected to remain on the cards in the near term ahead of the interim 55-day SMA at 102.53.

As long as the 4-month line around 101.85 holds the downside, the near-term outlook for the index should remain constructive.

Looking at the longer run, the outlook for the dollar is seen bullish while above the 200-day SMA at 97.67.

DXY daily chart