USD Index Price Analysis: Further retracement not ruled out

• DXY reverses two sessions with losses and bounces off 101.45/40.
• Extra decline could still retest the 2023 low near 100.80.

DXY manages to rebound from earlier 2-month lows near 101.40 on Wednesday.

The bearish sentiment around the dollar remains well and sound and this could force the index to breach the so far April low at 101.43 (April 5) and head towards the 2023 low around 100.80 (February 2).

Looking at the broader picture, while below the 200-day SMA, today at 106.51, the outlook for the index is expected to remain negative.

DXY daily chart