USD Index Price Analysis: Extra weakness not ruled out near term

• The index meets some contention near 101.80 on Monday.
• Further decline could still revisit the 101.30 zone in the short term.

The index wobbles around the 102.00 zone after bottoming out near 101.80, or multi-month lows, earlier in the session.

In case bears regain the upper hand, the loss of the January low at 101.77 (January 16) should put a potential deeper drop to the May 2022 low at 101.29 (May 30) back on the investors’ radar ahead of the psychological 100.00 yardstick.

In the meantime, while below the 200-day SMA at 106.40 the outlook for the index should remain tilted to the negative side.

DXY daily chart