• DXY remains on the defensive and adds to Tuesday’s losses.
• The 100-day SMA reinforces recent lows in the 103.00 zone.

DXY keeps the bearish note well in place for the second session in a row and trades close to recent lows near the 103.00 region on Wednesday.                                                                               

In case the index breaches the monthly low near 103.00, it could then open the door to a deeper retracement to the provisional 55-day SMA at 102.54 prior to the May low near the 101.00 neighbourhood.

Looking at the broader picture, while below the 200-day SMA at 105.35 the outlook for the index is expected to remain negative.

DXY daily chart