US DOLLAR INDEX PRICE ANALYSIS: NEXT ON THE DOWNSIDE COMES 105.80

• DXY remains under pressure in the lower end of the range.
• Further weakness could see the post-FOMC top at 105.80 retested.

DXY extends the bearish mood and revisits the low-106.00s, where some initial support appears to have turned up so far on Monday.

Considering the ongoing price action, a break below the 106.00 zone should not be ruled out in the short-term horizon. Against that, the index carries the potential to drop further and retest the post-FOMC peak at 105.78 (June 15).

Despite the ongoing downside, the near-term outlook for DXY is seen constructive while above the 5-month support line near 103.60.

In addition, the broader bullish view remains in place while above the 200-day SMA at 99.18.