• The index remains under pressure near the 103.00 zone.
• A deeper decline appears likely on a breach of the 102.90 area.

Price action around the dollar remains subdued and prompts DXY to put the 103.00 support to the test on Thursday.

If the offered stance intensifies, then the index could challenge the so far January low at 102.94 (January 9) in the near term, while a convincing breakdown of this level carries the potential to spark a retracement to, initially, the May 2022 low around 101.30 (May 30) ahead of the psychological 100.00 level.

In the meantime, while below the 200-day SMA at 106.38 the outlook for the index should remain tilted to the negative side.

DXY daily chart