US Dollar Index Price Analysis: Initial support comes near 96.00

• DXY extends the corrective downside to 96.20.
• Next on the downside emerges the 96.00 zone.

DXY drops for the second session in a row and revisits the low-96.00s on Tuesday.

While the downside is deemed as corrective only, it carries the potential to retest the 96.00 neighbourhood, where the 55-day SMA sits (96.09), ahead of the January 20 low at 95.41.

In the near term, the upside pressure remains intact while above the 4-month line just below 95.00. Looking at the broader picture, the longer-term positive stance in the dollar remains unchanged above the 200-day SMA at 93.40.

DXY daily chart