USD Index Price Analysis: Door open to extra retracement

• DXY’s decline gathers extra pace and tests 3-month lows.
• Next support of note now emerges at the key 200-day SMA.

DXY extends the post-CPI sell-off to the vicinity of the 107.00 region, or fresh multi-week lows.

Considering the recent price action, the dollar looks poised to extend the current bearish tone in the short-term horizon. That said, the next target of relevance is now seen at the critical 200-day SMA, today at 104.78.

While above the latter, the index is expected to maintain its constructive stance.

DXY daily chart