US Dollar Index Price Analysis: There is a temporary support at the 55-day SMA

• DXY’s downside momentum gathers extra steam on Friday.
• Further losses could see the 55-day SMA ay 104.73 revisited.

DXY sheds ground for the third consecutive session at the end of the week and retests the sub-106.00 region for the first time since early July.

The index broke below the multi-session pre-FOMC consolidative theme and in doing so it has paved the way for extra decline in the very near term. That said, the immediate support now turns up at the interim 55-day SMA at 104.73 prior to the 5-month support line around 103.85.

The near-term outlook for DXY remains constructive while above this 5-month support line.

In addition, the broader bullish view remains in place while above the 200-day SMA at 99.44.

DXY daily chart