US Dollar loses the grip, tests lows near 94.60

• The index gives away initial gains and is now testing 94.60/55 band.
• Yields of the US 10-year reference approach the 2.98% region.
• US Pending Home Sales for the month of June are due next.

The greenback, in terms of the US Dollar Index (DXY), lost the initial shine and has returned to the negative ground in the 94.60/55 band, or daily lows.

US Dollar looks to data, Fed

The index has started the week on a negative fashion today, adding to Friday’s losses and re-testing the key interim support area near 94.60, where sits the 21-day SMA.

The greenback faded last week’s peak at 94.90 after the first revision of US Q2 GDP figures came in a tad below estimates on Friday (4.0% vs. 4.1% expected).

In addition, the buck is deriving some weakness in the wake of the agreement to start trade negotiations between the US and the EU following the Trump-Juncker meeting.

Furthermore from the USD-universe, speculators pushed their net long positions to the highest level since June 13 2017, according to the latest CFTC report for the week ended on July 24.

Data wise today, June’s Pending Home Sales are due along with the regional manufacturing gauge by the Dallas Fed.

US Dollar relevant levels

As of writing the index is down 0.13% at 94.56 and faces the next support at 94.35 (55-day sma) seconded by 94.19 (short-term support line) and finally 94.08 (low Jul.26). On the upside, a breakout of 94.91 (high Jul.27) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19).