Dollar Index continues down despite increasing Treasury yields

• Dollar still down near 4-year lows, decline continues to accelerate.
• Dollar-Treasury yield relationship broken, bonds no longer propping up Dollar.

The Dollar Index has had a rough week, and is set to close down for the seventh week in a row, currently trading at 88.73 in the overnight market.

The Greenback, against a basket of its countercurrencies, has fallen steadily since January of 2017, as the US Dollar has fallen away under the presidency of Donald Trump despite promising hopes for economic growth within the US.

US Treasury yields, notably on the 10-year treasury bond, have climbed recently as bond traders price in the eventually of economic headwinds around the world, but the normal boost to the US Dollar on rising yields hasn't materialized in 2018, and the USD has continued to spiral downwards as yields on 10-year Treasuries reach new four-year highs. 

The US drops NFP data at 13:30 GMT, and Dollar bulls will be hoping for a big enough beat to convince markets that now's the time to start buying US Dollars again.

Dollar Index Technicals

The recent push lower saw the Dollar reach the138.1% Fibo retracement level, and a bullish move here could see price push passed the resistance area around 89.25. Support for any bearish moves comes from 88.60. On longer timeframes support is few and far between; DXY is trading near prices not seen since 2014, and the nearst major swing support is positively ancient, and parked miles away at 86.70.