US Dollar Index Price Analysis: A deeper pullback could retest 97.70

• DXY accelerates losses to the 98.50 region on Wednesday.
• Further weakness could drag the index to the 97.70 area.

DXY comes under further selling pressure and adds to the weekly leg lower in the 98.50 zone midweek.

Considering the recent price action in the dollar, further retracement in DXY now carries the potential to extend to the weekly low at 97.71 (low March 10), where some initial contention is expected to emerge.

The current bullish stance in the index, however, remains supported by the 6-month line, today around 95.85, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 94.43.

DXY daily chart