US Dollar tumbles below 94.30, session lows

• The index drops further and tests 94.30/25, daily lows.
• Yields of the US 10-year note met resistance at 2.99%.
• US Pending Home Sales expanded 0.9% in June.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, remains on the defensive today, testing lows in the 94.30/20 band.

US Dollar weaker despite data

The greenback is now accelerating the decline, adding to Friday’s post-GDP drop, breaking below the interim support at the 5-day SMA (at 94.35) and threatening to challenge the key short-term support line at 94.20.

The greenback picks up further downside pace despite US Pending Home Sales expanded more than expected 0.9% during June and the Dallas Fed manufacturing index came in above estimates at 32.3 in July.

The down move in the index comes along a correction lower in yields of the key US 10-year note from daily highs in the 2.99% area, although they remain in the area of multi-week tops.

US Dollar relevant levels

As of writing the index is down 0.43% at 94.28 and faces the next support at 94.19 (short-term support line) seconded by 94.08 (low Jul.26) and finally 93.71 (low Jul.9). 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).