Further losses likely below 103.50

• DXY slips back to new 2-month lows near 101.70 on Tuesday.
• Extra decline appears in store as long as 103.50 caps the price action.

DXY extends the ongoing multi-day decline to the 101.70/65 band on Tuesday.   

In light of the ongoing price action, the dollar looks poised to face further selling pressure while below the June high of 103.54 (June 30). That said, the breakdown of the July low at 101.66 (July 11) should put the May lows in the 101.00 region to the test sooner rather than later.

Looking at the broader picture, while below the 200-day SMA at 104.56, the outlook for the index is expected to remain negative.

DXY daily chart