The greenback, measured by the US Dollar Index, is rapidly losing ground on Tuesday, challenging the critical support at the 96.00 handle.
US Dollar lower on sentiment
The index is dropping to levels last seen in late October around the 96.00 mark as the selling pressure is quickly building up around USD. In addition, yields in US Treasuries are trading deep into the red territory, with the 10-year benchmark receding further and hovering over 1.70%.
Fanning the flames, prices for the West Texas Intermediate have breached the $30.00 mark, fading last week’s spike to the mid-$33.00s.
Second tier releases in the US economy showed the NFIB Business Optimism index coming in short of expectations, while Wholesale Inventories and API’s report on crude stockpiles are due later.
US Dollar levels to watch
The index is down 0.69% at 96.08 facing the next support at 95.43 (76.4% Fibo of 93.86-100.60) followed by 94.19 (low Sep.18 2015) and finally 93.86 (low Oct.14). On the other hand, a break out of 96.93 (200-day sma) would aim for 97.50 (high Feb.8) and then 97.87 (100-day sma)
(Market News Provided by FXstreet)
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