US Dollar Index continues under pressure, at 3-year lows
- Greenback bearish bias remains intact.
- DXY unable to recover holds near 3-year lows.
The Greenback remains under pressure, unable to recover ground. Optimism about the global economy lead to rising expectations of monetary policy tightening from many central banks. Markets expect a rate hike from the Federal Reserve in March but that is not enough for the dollar, as other central banks also point toward tightening.
The US Dollar Index (spot) bottomed earlier today at 90.28, the lowest since December 2014. From the lows, it bounced to the upside. The recovery was capped by 90.50 and the DXY dropped back toward daily lows. As of writing it was trading at 90.40, down 0.60% for the day and losing than 2% since the beginning of the year.
It is falling today for the fourth-day in-a-row. During the last two days, the slide gained momentum, particularly after breaking below 91.75/80, a strong support.
After it bottomed on Monday it stabilized in line with most forex crosses that have been moving in small ranges during the last hours. Limited price action could continue on Monday taking into account that is Martin Luther King Jr. Day in the US.
Technical levels
To the downside, immediate support is seen at 90.25/30, 90.00 and 89.55/60. On the upside, resistance might be located at 90.55/60, 90.95 (Jan 15 high) and 91.20.