US Dollar Index Price Analysis: Downside could extend further

• The index meets a formidable hurdle in the 97.60 region.
• The loss of the 97.00 support could accelerate losses.

The index keeps correcting lower following another rejection of 2020 highs in the 97.60 zone, where also converges the 55-day SMA.

DXY is flirting with both the 10-day and 21-day SMAs and remains vulnerable to further downside.

That said, the next significant support emerges at the 97.00 mark. A breakdown of this level carries the potential to spark another visit to lows near 96.30 (late December).

DXY daily chart