US Dollar Index Price Analysis: Downside risks a test of the 98.80 region

• DXY extends the correction lower to the sub-100.00 area.
• Further south emerges the 55-day SMA near 99.30.

The downside momentum in DXY has gathered steam since Friday’s, forcing the index to break below the psychological triple-digit support.

If the selling impetus picks up extra pace, then the next interim support is located at the 55-day SMA, today at 98.27. Further down aligns the more relevant  98.85/80 band, or monthly lows.

Looking at the broader scenario, the constructive bias is seen unchanged above the 200-day SMA, today at 98.30.

DXY daily chart