USD Index Price Analysis: Further weakness could revisit 108.40

• DXY accelerates losses and briefly pierces the 110.00 mark.
• A deeper correction could see the 108.40 region revisited.

DXY drops for the second session in a row and prints new multi-week lows in the sub-110.00 region on Wednesday.

The loss of 110.00 could force the index to retarget the 8-month support line near 108.40, an area coincident with the 100-day SMA. Below this zone, the downside pressure in the dollar is predicted to gather extra steam.

In the longer run, DXY is expected to maintain its constructive stance while above the 200-day SMA at 103.93.

DXY daily chart