USD Index Price Analysis: Sustained gains seen above 103.50

• DXY adds to Thursday’s losses around the 103.00 zone.
• The upside impulse is seen picking up pace beyond 103.50.

DXY looks under pressure and hovers around the 103.00 area ahead of the key Nonfarm Payrolls.

While further consolidation seems probable in the very near term, the continuation of the uptrend in place since mid-June could challenge the weekly high at 103.54 (June 30). Once the latter is cleared, the index could embark on a more serious uptrend to the May high at 104.69 (May 31), which appears reinforced by the 200-day SMA.

Looking at the broader picture, while below the 200-day SMA at 104.65, the outlook for the index is expected to remain negative.

DXY daily chart