• The index adds to Tuesday’s losses and breaches 102.00.
• The 3-month resistance line near 102.60 caps the upside so far.

DXY remains on the defensive and breaks below the 102.00 support once again on Wednesday.

In the near term, further losses appear in the pipeline while below the 3-month resistance line near 102.60. If the index manages to clear this region it could accelerate gains to the provisional 55-day SMA, today at 104.13.

Below this line, the dollar is expected to keep the short-term bearish bias unchanged.

In the longer run, while below the 200-day SMA at 106.46, the outlook for the index remains negative.

DXY daily chart