US Dollar looks fragile, around 91.60

Pablo Piovano FXStreet

The decline in the greenback seems to have found some decent contention around 91.60 when tracked by the US Dollar Index (DXY), now looking to pick up some upside traction around 91.70.

US Dollar off lows on data

The index bounced off daily lows after the advanced gauge of US consumer sentiment measured by the Reuters/Michigan index is expected to come in at 95.3 vs. forecasts at 95.1 for the current month, down from August’s 96.8.

Further results from the US docket saw retail sales contracting 0.2% MoM during August, while industrial production and capacity utilization also missed initial estimates for the same period.

The greenback gathered extra downside pressure in last sessions despite news cited the Trump’s administration is expected to implement its tax reforms at some point in before year end, although further details still remain to be seen (disappointing investors once again… and again… and again). In addition, inflation figures tracked by the CPI rose more than expected in August, although market participants quickly faded the initial spike.

US Dollar relevant levels

As of writing the index is retreating 0.34% at 91.73 and a breakdown of 91.99 (low Sep.14/15) would open the door to 91.71 (low Sep.13) and then 91.01 (2017 low Sep.8). On the upside, the initial hurdle aligns at 92.64 (high Sep.14) seconded by 93.35 (low Aug.31) and finally 93.63 (55-day sma).

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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