- The index is losing further ground and tests the mid-96.00s.
- Yields of the US 10-year note bounce of recent lows near 2.94%.
- Focus remains on US-China trade truce and broad risk trends.
The selling bias around the greenback remains unchanged so far this week and is now forcing the US Dollar Index (DXY) to drop to fresh lows in the mid-96.00s.
US Dollar Index weaker on risk-on trade
The index keeps suffering the improved tone in the risk-associated universe following the recently clinched truce between China and the US, prompting a sharp sell-off in the buck to the 96.50 region, or multi-day lows.
In addition, the decline in yields of the key US 10-year reference has reached the 2.94% region, levels last visited in mid-September, accompanying the leg lower in the Dollar.
US Dollar Index relevant levels
As of writing the index is losing 0.54% at 96.44 and a break below 96.32 (low Nov.22) would open the door to 96.04 (low Nov.20) and finally 95.68 (low Nov.7). On the flip side, the next hurdle emerges at 97.53 (high Nov.28) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).
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