Dollar Index attempts gains above 100.00

Having suffered the worst daily close since November 14, the dollar index is now looking to extend gains above 100.00 levels. 

The index closed at 99.90 on Monday after US Treasury Secretary Mnuchin said “excessively strong” US dollar may be negative in the short term. 

Trump’s decision to withdrawn from the TPP deal has not had any major impact in the markets so far. The Treasury yields are trading flat in Asia and that has opened the doors for a technical correction. 

It remains to be seen how global markets digest the TPP news. As of now, the dollar index is trading just above 100.00 levels. 

Dollar Index Technical Levels

Breach of immediate resistance at 100.26 (Jan 17 low) could yield see the technical correction gather pace. Next hurdle that could be put to test is 100.72 (Jan 12 low), above which the psychological level of 101.00 stands exposed. On the other hand, a failure to hold above 100.00 would shift risk in favor of a drop to 99.43 (Dec 8 low) and 99.12 (Oct 25 high).