• DXY seems to have embarked on a consolidative phase below 100.00.
• Further weakness is expected to emerge below that region.

DXY remains under pressure below the psychological 100.00 hurdle on Tuesday.

The continuation of the decline of the dollar looks the most likely scenario for the time being. Against that, the breach of the current 2023 low at 99.57 (July 14) could spark a deeper retracement to the weekly low of 97.68 (March 30 2022).

Looking at the broader picture, while below the 200-day SMA at 104.24, the outlook for the index is expected to remain negative.

DXY daily chart