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  • The index loses upside momentum and returns to the sub-96.00 area.
  • Yields of the US 10-year note drop to session lows near 3.22%.
  • NFIB index came in below estimates at 107.9 in September.

After clinching fresh tops above 96.00 the figure once again, sellers turned up and are now driving the US Dollar Index (DXY) back to the sub-96.00 region.

US Dollar Index gains capped above 96.00

The index once again tested and has been rejected from the area above the critical hurdle at the 96.00 milestone, where coincide last week’s tops and a Fibo retracement of the 2017-2018 drop.

There is no apparent catalyst of the knee-jerk, however the index appears to be   tracking yields of the US 10-year note, which are navigating session lows in the 3.22% region after recording fresh multi-year tops around 3.26% during early trade.

Data wise in the US calendar so far, the NFIB index came in at 107.9 for the month of September, failing to meet forecasts and down a tad from August’s print.

US Dollar Index relevant levels

As of writing the index is up 0.06% at 95.83 and faces the next hurdle at 96.16 (high Oct.9) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the other hand, a break below 95.52 (low Oct.5) would aim for 95.38 (10-day SMA) and then 95.15 (55-day SMA).