US Dollar collapses to 97.60

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, is nose-diving below the 98.00 support today amidst a generalized offered tone.

    US Dollar much weaker on sentiment, Dudley, data

    The selling pressure around the dollar has been intensifying since New York Fed’s Dudley stressed that continued financial tightening would weigh on FOMC.

    Fanning the flames, US ISM Non-manufacturing and Markit’s Services PMI have both come in below expectations. The positive news has come in from the labour market, where the ADP report bettered estimates, although the reading remained largely unnoticed by markets.

    Mounting selling pressure has dragged the index to fresh 2-month lows in the 97.60 area, levels last tested in mid-December.

    US Dollar significant levels

    As of writing the US Dollar Index is losing 1.28 % at 97.60 and a breakdown of 97.22 (low Dec.15) would aim for 96.92 (200-day sma) and then 96.58 (6-month uptrend). On the other hand, the next hurdle lines up at 99.88 (high Jan.29) followed by 100.00 (psychological level) and then 100.60 (2015 high Dec.3).
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