USD Index Price Analysis: Next support emerges near 104.40

• DXY breaks below the 105.00 level once again on Wednesday.
• A deeper pullback could see the weekly low near 104.40 revisited.

DXY resumes the decline and puts the 105.00 region to the test once again on Wednesday.

In case the corrective decline picks up further pace, the index could extend the drop to, initially, the weekly low of 104.42 (September 11). A sustained pullback below the latter could prompt the index to embark on a potential test of the critical 200-day SMA, today at 103.03.

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

DXY daily chart