USD Index Price Analysis: The 200-day SMA offers decent resistance

• The index comes under pressure after faltering in the 105.80 region.
• A breakout of the 200-day SMA is needed to allow for extra recovery.

DXY now looks offered after two daily drops in a row and following an unsuccessful attempt to retest the 1.0600 region earlier in the session on Wednesday.

A sustainable close above the 200-day SMA at 105.67 should provide extra legs to the index and the possibility to extend the recovery to, initially, the weekly high at 107.19 (November 30).

Below the 200-day SMA, the dollar’s outlook should remain negative.

DXY daily chart