US Dollar weaker, threatens to test 93.00

The greenback, in terms of the US Dollar Index, is intensifying the correction lower and stays poised to challenge the key support at the 93.00 handle.

US Dollar attention to Jackson Hole

The index has come under renewed downside pressure today following poor results from the flash manufacturing PMI tracked by Markit for the month of August and lower-than-expected new home sales during July. DXY thus eroded Tuesday’s advance following auspicious headlines regarding Trump’s tax reform plans.

The selling bias has accelerated today following positive prints from manufacturing PMIs in the euro area, surprising markets to the upside and giving extra wings to EUR/USD.

In addition, yields of the US 10-year reference are probing the area of daily lows around the 2.18% level, down from earlier tops beyond 2.22%.

Looking ahead, USD is expected to stay under pressure in light of the speech by Chief Yellen and ECB’s Draghi at the Jackson Hole Symposium tomorrow and on Friday.

US Dollar relevant levels

As of writing the index is retreating 0.30% at 93.14 facing the next support at 93.00 (low Aug.21) seconded by 92.93 (low Aug.11) and then 92.55 (2017 low Aug.2). On the upside, a break above 94.14 (high Aug.16) would aim for 95.08 (55-day sma) and finally 95.21 (23.6% Fibo of the 2017 drop).