US Dollar Index consolidates Friday’s gains around 90.00

DXY refreshes intraday low, fades bounce off early January low.
Market sentiment dwindles amid a quiet session, US 10-years Treasury yields drop.
Fedspeak, Chicago Fed National Activity Index eyed for fresh impulse.

Anil Panchal FXStreet

US dollar index (DXY) fails to extend Friday’s bounce off 4.5-month low, refreshing intraday bottom with 89.97 level, as European traders prepare for Monday’s bell. The greenback gauge jumped during late Friday amid tapering concerns. Though, a lack of major directives afterward weighs on the US Treasury yields and greenback by the press time.

Strong PMIs for May keep reflation fears on the table, which in turn pushed Atlanta Federal Reserve President Raphael Bostic and Philadelphia Fed President Patrick Harker to join Dallas Federal Reserve Bank President Robert Kaplan and back the need for tapering talks.

The fears of dialing back the Fed’s easy money put a safe-haven bid under the DXY but markets struggle for fresh clues then after and hence the greenback continues on its bearish trajectory as the market welcomes upbeat activity numbers amid a light calendar and thin news feed.

It’s worth mentioning that the gold’s run-up exerts downside pressure on the US Treasury yields and the US dollar as well.

That said, the US 10-year Treasury yield drops 1.4 basis points to 1.618% whereas the S&P 500 Futures rise 0.23% by the press time.

Given the lack of important catalysts during the European session, the latest DXY weakness could continue ahead of more activity figures, from Chicago Fed. Also important will be the comment from Fed Governor Lael Brainard.

Although upbeat data could help US Treasury yields, Fed’s Brainard should dump his cautious optimism to recall the DXY bulls.

Technical analysis

Unless crossing a two-month-old falling trend line resistance, around 90.45, DXY bulls are less likely to return.

Additional important levels

Overview
Today last price	89.98
Today Daily Change	-0.05
Today Daily Change %	-0.06%
Today daily open	90.03

Trends
Daily SMA20	90.56
Daily SMA50	91.47
Daily SMA100	91.07
Daily SMA200	91.76

Levels
Previous Daily High	90.16
Previous Daily Low	89.65
Previous Weekly High	90.43
Previous Weekly Low	89.65
Previous Monthly High	93.33
Previous Monthly Low	90.42
Daily Fibonacci 38.2%	89.96
Daily Fibonacci 61.8%	89.84
Daily Pivot Point S1	89.73
Daily Pivot Point S2	89.44
Daily Pivot Point S3	89.23
Daily Pivot Point R1	90.24
Daily Pivot Point R2	90.45
Daily Pivot Point R3	90.74

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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