US Dollar Index Price Analysis: A deeper drop could revisit 97.70

• DXY adds to Tuesday’s losses and drops to 97.80.
• Immediately to the downside emerges the 97.70 region.

The index intensifies the leg lower and breaks below the key support at the 98.00 yardstick midweek.

The continuation of the decline carries the potential to extend further south of the 98.00 mark and retest the weekly lows near 97.70 recorded on March 10,17. Down from here, the index faces temporary support levels at the 55- and 100-day SMAs at 96.98 and 96.56, respectively.

The current bullish stance in the index remains supported by the 6-month line just near 96.15, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 94.80.

DXY daily chart