US Dollar drops further, 100.00 on sight

The selling pressure around the buck is nothing but unabated so far today, now dragging the US Dollar Index to fresh lows in the proximity of the critical 100.00 handle.

US Dollar risks a test of 99.90

The index is extending the correction lower from peaks in the 101.20 region seen last week, staying on its way to test Friday’s lows near 99.90 if the current bearish tone persists.

Poor results from the manufacturing gauge by the US NY Empire State index have added to the offered bias around the buck, which add to the recent lacklustre figures from Retail Sales and CPI for the month of March.

Yields in US money markets have managed to bounce off daily lows for the time being, somewhat limiting the downside in the index.

Later in the NA session, the NAHB index is expected seconded by TIC Flows figures.

US Dollar relevant levels

The index is losing 0.44% at 100.05 facing the initial support at 100.04 (38.2% Fibo of the March drop) followed by 99.93 (low Apr.6) and finally 99.51 (23.6% Fibo of the March drop). On the other hand, a break above 100.63 (55-day sma) would aim for 100.88 (61.8% Fibo of the March drop) and then 101.07 (100-day sma).