A deeper drop emerges below 103.00

DXY retreats for the third consecutive session and approaches the area of three-month lows near 103.00 at the beginning of the week.

In case sellers push harder, the breakdown of the November low of 103.17 should leave the door open to extra losses in the near term. That said, the loss of the weekly low of 102.93 (August 30) could put a potential visit to the psychological 100.00 mark back on the radar.

In the meantime, while below the key 200-day SMA at 103.61, the outlook for the index is expected to remain bearish.