US dollar index reverses at 99.00 and drops to 98.50
On a volatile day, the US dollar is about to end lower across the board, retreating after hitting multi-month highs against the euro, the Swiss franc and levels near 105.00 on the USD/JPY pair.
Greenback traded in positive territory most of the day but reversed during the American session erasing all gains. It was about to finish with gains only against the pound, that plummeted in the market. GBP/USD trimmed losses but it was being unable to extend the rebound above 1.2200.
The US dollar index which gauges the US dollar against its main competitors climbed hitting levels on top of 99.00 for the first time since early February after Wall Street opening bell. Then turned to the downside, making an important correction.
The DXY fell toward 98.50. It printed a fresh daily low at 98.52 and near the end of the day, it was holding near the lows. The rejection from above 99.00 and the formation of the daily candle, ending far from the highs, could signal some consolidation ahead.
Technical levels
To the upside, resistance levels could be seen at 99.00/05 (daily high) and 99.30/35 (Jan 12, 13 & 14 high). On the downside, support might lie at 98.50 (daily low), 98.25 (Oct 21 low) and 98.10 (Oct 13, 14 & 17 high).
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.
