US Dollar weaker, in session lows near to 94.00

• The index trades in multi-day lows closer to the 94.00 mark.
• US 10-year yields ease from tops and return to the 2.96% region.
• US Initial Claims, Trade Balance figures and Durable Goods next on tap.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its major rivals, remains on the defensive this week and is poised to challenge the critical support at the 94.00 milestone.

US Dollar looks to trade, data

The index is struggling for direction in the second half of the week, so far managing to keep business above the 94.00 handle following yesterday’s sharp sell off.

In fact, the buck quickly lost ground as trade war tensions eased in response to the positive tone at the Trump-Juncker meeting on Wednesday in Washington. Following the meeting, Trump and Juncker agreed to begin trade negotiations and suspend all new tariffs during this period.

DXY dropped and pierced the key short-term support line off June’s lows – today at 94.14 – although it is now trying to stage a rebound.

In the US data space, Trade Balance figures for the month of June are coming up later in the session seconded by Durable Goods Orders during the same period along with the usual weekly Initial Claims.

US Dollar relevant levels

As of writing the index is down 0.04% at 94.18 and faces the next support at 94.08 (low Jul.26) followed by 93.71 (low Jul.9) and finally 93.19 (low Jun.14). On the upside, a breakout of 94.29 (55-day sma) would target 94.57 (21-day sma) en route to 94.85 (high Jul.24).