US Dollar tumbles to fresh 6-month lows near 97.20

Pablo Piovano FXStreet

There is no respite for the greenback. Tracked by the US Dollar Index (DXY), the buck has retreated to the area of fresh 2017 lows in the vicinity of 97.20, where it is now looking to rebound.

US Dollar down to November levels

The index has resumed its downside on Friday, quickly eroding yesterday’s advance and trading in levels last seen in early November, previous to the US elections.

In addition, DXY has retreated in five of the last six weeks following a rejection from the 101.30 region seen in early April.

The greenback has accelerated its decline this week, as US political risks increased dramatically as of late, particularly following the so-called ‘Russia-gate’ involving President Trump, the FBI and Russian officials.

There are no data scheduled in the US docket today, only the speech by St. Louis Fed J.Bullard (2019 voter, centrist).

US Dollar relevant levels

The index is retreating 0.55% at 97.23 facing the next support at 96.94 (low Nov.4 2016) and then 95.91 (low Nov.9 2016). On the upside, a break above 97.97 (high May 18) would open the door to 98.01 (high May 17) and finally 98.77 (high May 16).

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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