USD Index Price Analysis: Further decline could revisit 109.35

• DXY exacerbates the losses amidst broad-based risk appetite.
• A deeper retracement could see the weekly low at 109.35 revisited.

DXY adds to the sour start of the week and puts the 111.00 neighbourhood to the test on Tuesday.

In the current context, the continuation of the corrective decline appears likely and with the next target at the weekly low at 109.35 (September 20). The loss of the latter could retest the interim support at the 55-day SMA at 108.61.

The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.20.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 102.60.

DXY daily chart