US Dollar off lows, still below 90.00

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index (DXY), has dropped to levels last seen in December 2014 below the critical support at 90.00 the figure, extending the bearish momentum seen in past weeks.

US Dollar weak on Trump’s trade measures

The selling pressure stays unabated around the buck so far this week, pushing the index to test fresh 4-year lows in the vicinity of 89.80 during early trade. The down move, however, seems to have found some decent support around that area for the time being.

USD met fresh selling impetus in response to President Trump’s measures on trade, imposing tariffs on solar panels and washing machines, showing the White House bias towards protectionism remains unchanged.

In the same line, Japan suggested the Trans-Pacific trade pact could be signed in March, without the US.

In the data space, advanced manufacturing/services PMI by Markit are due later in the NA session along with December’s existing home sales and the usual weekly report on US crude oil supplies by the EIA.

US Dollar relevant levels

As of writing the index is losing 0.12% at 89.99 and a break below 89.82 (low Jan.24) would expose 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014). On the upside, the next barrier aligns at 90.70 (high Jan.22) seconded by 90.98 (high Jan.18) and then 92.64 (high Jan.9).

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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