USD Index Price Analysis: Next on the upside comes 102.84

• DXY comes under pressure following two consecutive daily gains.
• Further north emerges the monthly high at 102.84.

DXY faces some renewed selling pressure and retreats from Tuesday’s weekly peaks in the 102.75/80 band on Wednesday.

The index extends the upbeat tone seen at the beginning of the week and seems ready to challenge the so far monthly top of 102.84 (August 3) sooner rather than later. The breakout of this level exposes a probable move to the July high of 103.57 (July 3), which appears underpinned by the proximity of the key 200-day SMA.

Looking at the broader picture, while below the 200-day SMA (103.43) the outlook for the index is expected to remain negative.

DXY daily chart