USD Index Price Analysis: Tough resistance remains near 103.60

• DXY adds to Monday’s advance and retests the 103.60 zone.
• Extra gains from here target the key 200-day SMA near 105.70.

DXY extends Monday’s auspicious start of the week and challenges recent peaks in the 103.60/65 band on Tuesday.                                                                                    

In case bulls regain the upper hand, a convincing move past 103.60/65 could pave the way for a potential challenge of the key 200-day SMA, today at 105.74 prior to the 2023 high of 105.88 (March 8).

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

DXY daily chart