USD Index Price Analysis: Extra losses look likely below 104.00

-  DXY manages to regain some composure following Tuesday’s sell-off.

-  Losses are expected to accelerate below the monthly low of 103.98.

DXY attempts a mild recovery to the 104.30/40 band after bottoming out just below the 104.00 support earlier in the session on Wednesday.

The breakdown of the November low of 103.98 (November 14-15) should pave the way for a quick test of the critical 200-day SMA at 103.60 prior to the weekly low of 102.96 (August 30).

In the meantime, while above the key 200-day SMA, today at 103.60, the outlook for the index is expected to remain constructive.

DXY daily chart