US Dollar Index Price Analysis: Further losses likely below 95.70

• DXY trades on the defensive below the 96.00 yardstick.
• A breach of 95.70 exposes a deeper retracement.

DXY bounces off recent lows in the vicinity of 95.75 and now looks to reclaim the key 96.00 barrier on Tuesday.

Further selling pressure should put the 95.70 region to the test, while a breach of this level exposes a potential drop to December’s low at 95.57 (December 31).

In the meantime, while above the 4-month support line (off September’s low) just above 95.00, further gains in DXY are likely. Looking at the broader picture, the longer-term positive stance remains unchanged above the 200-day SMA at 93.08.

DXY daily chart