USD Index Price Analysis: The 200-day SMA holds the downside… for now

• DXY keeps the choppiness well and sound so far this week.
• The loss of the 200-day SMA near 105.00 could accelerate losses.

DXY trades in an inconclusive fashion above the 106.00 mark at the end of the week.

The index appears to have moved into a consolidative phase so far this week. That said, a drop below the November low at 105.34 (November 15) could pave the way for a probable visit to the critical 200-day SMA, today at 105.05.

The loss of this important region should shift the dollar’s outlook to negative, with the immediate support at the August low at 104.63 (August 10).

DXY daily chart