US Dollar Index gyrates around 96.00 post-NA open

The index looks to pick up pace above the 96.00 mark.
US stock markets opened with sharp losses today.
Yields of the US 10-year note tumble below 3.12%.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY), has trimmed part of the earlier losses and is now looking to re-test the 96.00 area and above.

US Dollar upside still capped beyond 96.00

The index is struggling for direction on a volatile session, following an earlier test of highs near 96.20 and the subsequent drop to the 95.80 zone.

The greenback remains under some pressure amidst declining yields of the key US 10-year note, which have retreated to fresh 3-week lows in the 3.12% area.

Absent publications and events in the US calendar, investors are closely following the US stock markets, where the DowJones has started the session under heavy pressure, down almost 500 pts at the time of writing.

On the broader picture, the buck is poised to remain underpinned by risk-off mood and rising jitters over Italy and Brexit.

Later in the NA session, Atlanta Fed R.Bostic (voter, centrist) is due to speak.

US Dollar Index relevant levels

As of writing the index is losing 0.04% at 95.99 and a breakdown of 95.49 (10-day SMA) would open the door to 95.36 (21-day SMA) and finally 94.79 (low Oct.12). On the flip side, the next hurdle is located at 96.15 (high Oct.23) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13).

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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