US Dollar Index Price Analysis: Corrective drop could extend to 101.00

• DXY retreats from Thursday’s 19-year highs near 104.00.
• A deeper correction could extend to the 101.00 region.

Following nearly 2-decade highs around 104.00, DXY is finally facing some corrective downside at the end of the week.

There is still scope for further downside, as the index keeps navigating the overbought territory, as per the daily RSI around 75. That said, the retracement carries the potential to extend to the 101.00 area prior to the weekly low in the 99.80 zone (April 21).

The current bullish stance in the index remains supported by the 7-month line near 96.70, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.70.

DXY daily chart