US Dollar challenging lows near 94.70

A bout of selling interest is now hitting the greenback – measured by the US Dollar Index – dragging it to the area of daily lows in the 94.75/70 band.

US Dollar attention to ECB

The index has eroded yesterday’s advance and seems it has resumed the recent bearish trend, keeping the trade in 2-week lows and retracing most of the up move post-Yellen’s speech at Jackson Hole.

USD has come under renewed and intensified selling pressure as of late, as market participants continue to adjust to changing expectations of a potential Fed’s rate hike in the next months, specially in light of the recent disappointing results from key US indicators, relegating the index to the 94.70 region after recent ‘double-tops’ near 96.30.

Ahead in the session, US Initial Claims are only due followed by the EIA’s weekly report on crude oil inventories, although the bulk of the attention will be on the ECB meeting earlier in the European afternoon.

US Dollar relevant levels

The index is retreating 0.19% at 94.78 facing the immediate support at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and the 91.88 (2016 low May 3). On the upside, a breakout of the 100-day sma at 95.19 would open the door for a test of 95.41 (61.8% Fibo of the July-August drop) and finally 96.20 (200-day sma).