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  • The index remains entrenched into the red territory.
  • US 10-year yields drop and challenges 2.87%.
  • US New Home Sales expanded more than expected 6.7% MoM.

The US Dollar Index (DXY), which measures the greenback vs. a basket of its main rivals, remains on the defensive on Monday albeit appears well supported in the 94.30 region for the time being.

US Dollar in multi-day lows

The index intensifies the decline today, down for the third session in a row as investors remain vigilant on the US-China-EU trade front.

The down move in DXY comes along a drop in yields of the key US 10-year reference to sub-2.87% area, or multi-day lows.

In the data space, US New Home Sales surprised to the upside in May, expanding at a monthly 6.7%, or 689K units, while the Chicago Fed National Activity index came in on the soft side at -0.15.

US Dollar relevant levels

As of writing the index is losing 0.14% at 94.41 and a breach of 94.29 (low Jun.25) would open the door to 94.25 (21-day sma) and then 93.19 (low Jun.13). On the upside, the next resistance emerges at 95.53 (2018 high Jun.22) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017).