US Dollar Index flirts with lows near 94.70
- The index resumes the downside and tests lows near 94.70.
- US 10-year yields ease from tops around 2.86%.
- US Consumer Confidence by CB next of relevance in the calendar.
The greenback, in terms of the US Dollar Index (DXY), remains on the defensive so far this week and is now challenging the area of daily lows around 94.70.
US Dollar Index looks to data, politics
The selling pressure continues to gather traction around the greenback today and is now dragging the index to clinch fresh 4-week lows in the 94.70 region, challenging at the same time the critical short-term support line.
The buck came under further pressure today as trade war fears continue to ease, particularly after yesterday’s agreement between Mexico and the US, all sustaining the better sentiment surrounding the risk-on complex.
Later in the US docket, the Conference Board will publish its Consumer Confidence gauge and house prices will also be in centre stage in light of the release of the S&P/Case-Shiller index.
US Dollar relevant levels
As of writing the index is losing 0.12% at 94.66 and a break below 94.20 (38.2% Fibo of the 2017-2018 drop) would aim for 94.08 (low Jul.26) and then 93.71 (low Jul.9). On the other hand, the next up barrier aligns at 95.52 (21-day SMA) seconded by 95.60 (10-day sma) and finally 95.71 (high Aug.23).
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.
