USD Index Price Analysis: Further consolidation on the cards

• The index remains within the consolidative theme in the low-102.00s.
• The breach of the YTD low at 101.77 could open the door to further decline.

The index navigates within a narrow range just above the 102.00 mark on Thursday.

So far, the continuation of the side-lined mood looks the most likely scenario for the dollar in the very near term. In case bears regain the upper hand, the loss of the January low at 101.77 (January 16) should put a potential deeper drop to the May 2022 low around 101.30 (May 30) back on the investors’ radar prior to the psychological 100.00 level.

In the meantime, while below the 200-day SMA at 106.44 the outlook for DXY should remain tilted to the negative side.

DXY daily chart