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US Dollar Index still under pressure, manages to rebound from 95.70

  • The index met support around 95.70 earlier in the session.
  • US 10-year yields stay sidelined around 3.20%.
  • US EIA’s weekly report on crude oil inventories coming up next.

In terms of the US Dollar Index (DXY), the greenback is now looking to add strength to the rebound from fresh multi-day lows in the 95.70 zone.

US Dollar Index remains under pressure

The index is trading well into the negative territory so far this week, reverting at the same time a 3-week positive streak, including fresh 2018 peaks beyond 97.00 the figure (October 31).

The buck remains under pressure as market participants continue to adjust to the recent results from the US mid-term elections, which will now see a divided Congress, broadly in line with previous estimates.

Still around the US elections, Senior Market Analyst at FXStreet Joseph Trevisani noted: “The voters rebuke to the Republicans was mild and their reward to the Democrats was modest. Demonizing Trump was no more successful as a campaign strategy than demonizing Pelosi. Will the parties learn the obvious lesson and govern? The early signs are not encouraging”.

Nothing worth mentioning in the US calendar today other than the weekly report on US crude oil inventories by the EIA, expected later in the session.

US Dollar Index relevant levels

As of writing the index is losing 0.36% at 95.88 facing the next support at 95.68 (low Nov.7) followed by 95.47 (low Oct.20) and finally 95.38 (55-day SMA). On the other hand, a breakout of 96.49 (10-day SMA) would open the door to 96.68 (high Nov.5) and then 97.19 (2018 high Oct.31).

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