USD Index Price Analysis: Further weakness targets 101.30

• The index comes under pressure and revisits the 101.60 area.
• A deeper decline should target the May 2022 low near 101.30.

DXY kicks in the week in an offered stance and rebounds from earlier lows in the 101.60/55 band on Monday.

The index seems to be gradually losing ground amidst the broader bearish outlook for the greenback. In case bears push harder, the loss of the so far 2023 low at 101.52 (January 18) could trigger a potential deeper drop to the May 2022 low around 101.30 (May 30) prior to the psychological 100.00 level.

In the meantime, while below the 200-day SMA at 106.45 the outlook for the index should remain tilted to the negative side.

DXY daily chart