US Dollar down smalls below 95.00

USD retreated from tops above the 95.00 handle.
US 10-year yields in the lower end of the range near 2.31%.
Headlines from US tax reform plans acting as driver.

Pablo Piovano FXStreet

Tracked by the US Dollar Index (DXY), the greenback has abandoned the area of recent peaks above the 95.00 handle and is so far posting marginal losses near 94.80.

US Dollar attention to US politics

Despite the index is trading on the defensive early in the European morning, it manages well to keep business in the upper bound of the recent range and close to the critical up barrier at 95.00 the figure.

USD remains vigilant on the developments in the US political scenario, where headlines from the tax reform proposed by the White House keep acting as the main drivers for the buck so far.

In this regard, Republicans tax writers have been facing a strong resistance from the corporate sector following the proposal of a tax on cross-border payments by multinational companies.

In the data space, nothing worth mentioning other than the weekly report on US crude oil inventories by the EIA, expected later in the NA session.

US Dollar relevant levels

As of writing the index is losing 0.10% at 94.83 and a breakdown of 94.75 (10-day sma) would open the door to 94.42 (low Nov.2) and finally 94.03 (23.6% Fibo of the 2017 drop). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.66 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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