US Dollar weaker, holding on to 93.00

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the buck vs. its main rivals, has intensified its downside today although it appears to have found some decent support around the 93.00 neighbourhood.

US Dollar in 5-day lows

The selling pressure is now picking up pace around the greenback, dragging the index to fresh 5-day troughs in the boundaries of 93.00 the figure although with no other catalyst than poor performance from US yields.

In fact, yields of the 10-year benchmark are navigating the area of daily lows around 2.18%, keeping the buck under pressure.

In the US data space, the Chicago Fed National Activity index dropped to -0.01 during last month from June’s 0.16.

Ahead in the week, USD is poised to stay under scrutiny in light of the Jackson Hole Symposium and Yellen’s speech on Friday. Other relevant data include the advanced manufacturing PMI (August) and July’s new home sales on Wednesday followed by initial claims and existing home sales (Thursday) and durable goods orders (Friday).

US Dollar relevant levels

As of writing the index is losing 0.34% at 93.04 and a breakdown of 92.83 (low Aug.11) would aim for 92.56 (low Aug.3) and then 92.39 (2017 low Aug.2). On the flip side, the next resistance aligns at 93.37 (10-day sma) seconded by 94.06 (high Aug.16) and finally 95.03 (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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