US Dollar stays depressed near 93.30

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the buck vs. its main rivals, remains on the defensive so far this week and is currently navigating the 93.30 region.

US Dollar now looks to FOMC minutes

After climbing to fresh tops in the 94.25/30 band on Friday, the index sparked a correction lower to the current area of 93.30, where it is looking to stabilize.

However, the greenback stays underpinned by rising expectations of a Fed move on rates at the December meeting and speculations over the implementation of the tax reform by the Trump administration at some point in Q4, all rendering occasional dips in USD as shallow.

Absent releases during the first half of the week, the buck will look to the broad risk appetite trends and headlines from the Korean Peninsula for direction, all ahead of the key FOMC minutes expected tomorrow and inflation figures tracked by the CPI due on Friday.

US Dollar relevant levels

As of writing the index is losing 0.22% at 93.34 facing the initial support at 92.95 (low Sep.29) seconded by 92.85 (21-day sma) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 94.03 (23.6% Fibo of the 2017 drop) would open the door to 94.27 (high Oct.6) and finally 94.47 (100-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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