US Dollar Index survives 101.48 low, bulls trapped below 50 SMA

Once again, the US dollar index faces renewed selling pressure close to the 102.50 handle. As expected, an economic calendar empty without US data and uncertainties related to President Trump’s inauguration, served as catalysts to leave the greenback behind as it traded near to the 101.48 lows.

Market activity has been mixed on Tuesday as the dollar erased most gains from the European session. At the time of writing, DXY is bearly up +0.040, or 0.04%. Everything seemed business as usual, however, during the NA session dollar bulls lost ground against commodity currencies. Later, the Great British Pound drilled sellers to gain back +60 pips from its session's low. The Japanese yen seemed a winner for moments, as the greenback recovered from 105.18 (session's low) moving above the 106.00 handle, but it failed to protect its gains. On the flip side, the single currency offered the consolation prize to the dollar with +60 pips gains. 

In Wall Street, the Dow Jones posted a -0.16% loss to end around 19,855 figure. The S&P500, almost neutral, walked away with a marginal gain and still up for the month 0.41%

Levels to watch

To the upside, the DXY has to battle again its 50 SMA near 102.40/50 resistance zone. To the downside, the 200 SMA provides a place to rest in the short-term. However, an open and close below the 102.00 (round figure) would open doors to target the support zone 101.40/20.

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