US Dollar looking for direction around 99.00

The greenback – when tracked by the US Dollar Index – is trading almost unchanged at the beginning of the week, holding on to the key 99.00 barrier following the Asian close.

US Dollar finds support near 99.00

The index has sold off from the 99.80 region during the second half of last week, although it managed to close the week with gains after four consecutive pullbacks.

Lower-than-expected inflation figures and retail sales during April have removed some tailwinds from the buck, prompting US yields to plummet to the lower bound of the recent range.

DXY is now struggling around the critical 99.00 handle, where sit a retracement of the April-may drop, the 200-day sma and the 12-month resistance/support line.

From the speculative front, USD net longs continued to give way during the week ended on May 9, this time retreating to the lowest level since mid-October 2016 as per the latest CFTC report.

In the US data space, the NY Empire State index is expected later along with TIC flows for the month of March and the NAHB index.

US Dollar relevant levels

The index is losing 0.03% at 99.02 and a break below 98.96 (low May 9) would open the door to 98.56 (low Apr.25) and then 98.36 (2017 low May 8). On the upside, the next hurdle lines up at 99.18 (200-day sma/12-month resistance line) ahead of 99.47 (38.2% Fibo of the April-May drop) and finally 99.77 (high May 11).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 


GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 


Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more