USD Index Price Analysis: Initial contention appears around 105.50

• DXY comes under some downside pressure following Friday’s tops.
• So far, the mid-105.00s emerges as a decent support zone.

DXY sees its recent rebound to the 106.80 region lose momentum and recedes to the 106.40 zone at the beginning of the week.

In case sellers regain the upper hand, then the index could slip back to the so far monthly low of 105.53 (October 12) ahead of the weekly low of 104.42 (September 11), which still appears reinforced by the proximity of the interim 55-day SMA at 104.58.

In the meantime, while above the key 200-day SMA, today at 103.22, the outlook for the index is expected to remain constructive.

DXY daily chart