• DXY starts the week on the defensive near 101.00.
• The breakout of 101.00 could open the door to extra losses.

DXY faces some extra downside pressure and puts the 101.00 support to the test at the beginning of the week.

The weekly low at 101.01 represents the next significant support for the current decline (April 26). Losing this area might pave the way to a deeper decline to the 2023 low at 100.78. (April 14).

Looking at the broader picture, while below the 200-day SMA, today at 105.93, the outlook for the index is expected to remain negative.

DXY daily chart