US Dollar tumbles to lows near 95.10 ahead of Fedspeak

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index, has come under renewed selling pressure on Monday, dropping to session lows near 95.10.

US Dollar focus on Fedspeak

The index has quickly eroded Friday’s decent gains and has re-focused on the lower bound of the range near the 95.00 handle as the risk-on trade has reverted its initial negative sentiment.

According to the latest CFTC report, USD speculative net longs have retreated to the lowest level since July 12 during the week ended on September 20, prior to the key FOMC meeting.

Later in the NA session, New Home Sales and the manufacturing gauge by the Dallas Fed are due, while speeches by N.Kashkari (2017 voter, neutral?), D.Tarullo (voter, dovish) and R.Kaplan (2017 voter, neutral?) will keep the attention on the dollar.

US Dollar relevant levels

The index is losing 0.22% at 95.26 and a break below 94.82 (support line off 2016 low) would open the door to 94.44 (low Sep.8) and finally 94.05 (low Aug.18). On the upside, the next hurdle aligns at 96.03 (200-day sma) ahead of 96.31 (spike post-BoJ Sep.21) and finally for 96.50 (high Aug.5).

1. R3 95.4133
2. R2 95.4067
3. R1 95.3933
PP 95.3867
1. S1 95.3733
2. S2 95.3667
3. S3 95.3533

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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