US Dollar Index falls to fresh 4-month lows despite US data
- USD weakness continues during American session.
- US data offers limited support to the greenback.
- DXY heads toward fifth weekly loss in-a-row.
The greenback extended losses on Friday against its European rivals and the yen, although it managed to stabilize versus commodity currencies.
The US Dollar Index (spot) recently dropped to 91.20, the lowest intraday level since September 8. The index is falling for the third consecutive day. Today it lost a key technical level: the 91.75/80 area that capped the downside many times during the current month.
The DXY came under pressure yesterday with EUR’s rally and also after an unexpected slide in the PPI index. Today’s US data came most in line with expectation with the core CPI showing numbers above consensus and retail sales matching estimations but the report contained positive revisions to November figures.
The modest upbeat data boosted the greenback but the recovery was short-lived. After reaching 91.50 the DXY turned lower again. As of writing it was trading at 91.30, headed toward the lowest weekly close since January 2015.
Levels to watch
To the downside, the immediate support could be seen at 91.20 (Jan 12 low), followed by 91.00 (2017 low) and 90.30. On the opposite direction, resistance levels might be located at 91.50, 91.75/80 (Jan 2, 4 & 5 low) and 92.00.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
