US Dollar Index Price Analysis: Next support of note comes at 105.80

• DXY adds to Friday’s pullback and revisits the 107.20 area.
• In case the downside picks up pace, the index could retest the 105.80 zone.

DXY tumbles further and prints new multi-day lows in the 107.20 zone on Monday.

The index retreats from the overbought territory and opens the door to extra decline in the very near term. That said, the deterioration of the short-term outlook could see the index revisit the post-FOMC highs near 105.80 (June 15).

As long as the index trades above the 5-month line near 103.30, the near-term outlook for DXY should remain constructive.

In addition, the broader bullish view remains in place while above the 200-day SMA at 98.87.

DXY daily chart