USD Index Price Analysis: Selling pressure mitigated above 103.50

• DXY picks up extra impulse and advance to weekly highs.
• Above 102.84 comes the July peak of 103.57.

DXY adds to Monday’s advance and trades at shouting distance from the July highs above 102.80 on Tuesday.

The index extends the upbeat tone seen at the beginning of the week and seems ready to challenge the so far monthly top of 102.84 (August 3) sooner rather than later. The breakout of this level exposes a probable move to the July high of 103.57 (July 3), which appears underpinned by the proximity of the key 200-day SMA.

Looking at the broader picture, while below the 200-day SMA (103.48) the outlook for the index is expected to remain negative.

DXY daily chart