US Dollar hovering over 94.40, 2-month lows

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index, is extending its bearish momentum on Thursday, falling to fresh 2-month lows in the 94.40/30 band.

US Dollar depressed post-FOMC, looks to data

The index is retreating for the fifth consecutive session so far, coming down from monthly tops in the mid-96.00s following a dovish tone from the FOMC minutes on Wednesday.

Despite a somewhat dovish statement was expected by market participants, the persistent ‘wait-and-see’ stance from the Committee plus no hints regarding the potential timing of a rate hike was perceived as bearish by traders and pushed USD lower vs. its main peers.

Ahead in the session, usual US Initial Claims are due followed by the manufacturing index gauged by the Philly Fed.

US Dollar relevant levels

The index is retreating 0.25% at 94.48 facing the immediate support at 94.28 (up trend off 2016 low at 91.88) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3). On the upside, a break above 95.11 (100-day sma) would open the door to 96.50 (high Aug.5) and finally 97.05 (78.6% Fibo of July-August drop).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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