US Dollar Index Price Analysis: Another drop to 101.30 is not ruled out

• DXY comes under pressure after two daily gains in a row.
• The leg lower could revisit the 101.30 region near term.

DXY reverses the recent upside and retests the 102.00 neighbourhood on Thursday.

The inability of the dollar to spark a more serious rebound could prompt sellers to return to the market and shift the focus to a potential test of the Mat low at 101.29 (May 30), which is also underpinned by the proximity of the 55-day SMA, today at 101.31.

As long as the 3-month line around 100.90 holds the downside, the outlook for the index should remain constructive.

Looking at the longer run, the outlook for the dollar is seen constructive while above the 200-day SMA at 96.94.

DXY daily chart