US Dollar extends the leg lower below 100.00

The offered bias around the greenback stays unabated at the beginning of the week, now dragging the US Dollar Index to fresh lows in sub-100.00 levels.

US Dollar still hurt by FOMC

The index is still suffering the dovish rate hike by the Federal Reserve at its meeting last week, as the Committee failed to signal a faster normalization of the monetary conditions despite lifting the Fed Funds by 25 bp.

Markets’ disappointment is pushing the buck to its fourth session with losses, trading back to levels last seen in early February and opening the door for a potential visit to YTD lows in the vicinity of 99.20.

Nothing relevant from today’s US docket, with the Chicago Fed National Activity Index only due later along with the speech by Chicago Fed C.Evans (voter, dovish).

From the positioning perspective, USD speculative net longs have ticked higher to 2-week tops during the week ended on March 14, as per the latest CFTC report.

US Dollar relevant levels

The index is losing 0.21% at 99.93 facing the next support at 99.19 (2017 low Feb.2) followed by 96.94 (low Nov.4 2016) and finally 95.91 (low Nov.9 2016). On the flip side, a breakout of 100.37 (61.8% of the February-March up move) would open the door to 100.89 (100-day sma) and then 101.00 (55-day sma).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.