A deeper pullback is seen below 104.00

–  DXY resumes the decline and puts 104.00 to the test.

–  Extra losses appear on the cards on the breach of 104.00.

DXY reverses two consecutive daily advances and resumes the downward bias on Friday.

In case bears regain control, the breakdown of the November low of 103.98 (November 14-15) should pave the way for a quick test of the critical 200-day SMA at 103.61 prior to the weekly low of 102.96 (August 30).

In the meantime, while above the key 200-day SMA, the outlook for the index is expected to remain constructive.

DXY daily chart