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.

Matías Salord FXStreet

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.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.