Further losses in store below 103.50

• DXY drops markedly to the 102.00 area following US NFP.
• The 103.50 region continues to cap the upside.

DXY adds to Thursday’s decline and challenges the key 102.00 support at the end of the week.

The index came under renewed downside pressure soon after hitting multi-week highs near 102.80 on Thursday. So far, the July tops around 103.50 (July 3) emerge as a tough barrier for bulls. This area is also underpinned by the key 200-day SMA.

Looking at the broader picture, while below the 200-day SMA (103.57) the outlook for the index is expected to remain negative.

DXY daily chart