• DXY adds to the weekly leg lower and threatens 103.00.
• Further retracement could revisit the 102.50 zone.

DXY drops for the third session in a row and puts the 103.00 support to the test on Wednesday.

If losses accelerate and the index breaks below the 200-day SMA (103.07), it could revisit interim contention at the 55-day and 100-day SMAs at 102.47 and 102.33, respectively, prior to the August low of 101.74 (August 4).

While above the key 200-day SMA, the outlook for the index is expected to remain constructive.

DXY daily chart