US Dollar meets support near 94.20, still under pressure

• The index looks to rebound beyond the 94.35/40 band.
• Yields of the US 10-year note climb to the 2.90% neighbourhood.
• US New Home Sales the only release of note later today.

The greenback, in terms of the US Dollar Index (DXY), seems to have found some decent support in the 94.20 region for the time being.

US Dollar looks to Trump

After two consecutive daily pullbacks, the index is now regaining some ground after meeting contention in the 94.25/20 band, where lies the 55-day sma.

The down move in the buck came in response to last week’s comments by President Trump, when he somewhat criticized the Fed’s tightening policy and voiced (once again) against the strong currency.

On the opposite direction, yields of the key US 10-year note are now extending the upside and are challenging the key 2.90% region, all amidst the US-China trade effervescence and US politics as drivers.

News from the speculative community noted USD net longs climbed to 2018 tops in the week to July, according to the latest CFTC report.

In the US data space, New Home Sales for the month of June will be the sole publication later today.

US Dollar relevant levels

As of writing the index is down 0.11% at 94.36 and a breach of 94.23 (55-day sma) would target 94.20 (38.2% Fibo of 2017-2018 drop) en route to 93.71 (low Jul.9). On the upside, the next hurdle is located at 94.71 (10-day sma) seconded by 95.53 (high Jun.28) and finally 95.65 (2018 high Jul.19).