US Dollar Index Price Analysis: A drop to 97.70 is not ruled out

• DXY adds to Monday’s decline below the 99.00 level.
• Further downside exposes a retest of the 97.70 region.

DXY accelerates the recent breakdown of the 99.00 area and drops to 2-day lows near 98.60 on Tuesday.

The ongoing corrective downside carries the potential to extend further in the very near term, therefore exposing a probable decline to the weekly low at 97.71 (March 10) ahead of the temporary support at the 20-day SMA at 97.46.

The current bullish stance in the index remains supported by the 6-month line, today near 95.80, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 94.39.

DXY daily chart