• The index remains on the defensive in the first half of the week.
• Next on the downside emerges the 102.60 zone.

DXY adds to the bearish note recorded on Monday and puts the 103.00 support level to the test on Tuesday.

The recent price action leaves the door open to the continuation of the consolidative phase for the time being. However, a drop below last week’s low at 102.64 (February 9) should open the door to a deeper pullback in the short term to, initially, the 3-month support line, today near 102.35.

In the longer run, while below the 200-day SMA at 106.45, the outlook for the index remains negative.