US Dollar upside stalled near 93.40

The greenback, tracked by the US Dollar Index, has surrendered part of its initial gains on Monday and is now hovering over the 93.20/15 band.

US Dollar clings to daily gains

The index is struggling to keep its daily gains as momentum around the buck has been fading since daily tops near 93.40.

DXY stays fragile despite US pending home sales surprised to the upside in June, up 1.5% on a monthly basis vs. 0.7% forecasted and reverting May’s 0.7% contraction. Earlier in the session, the Chicago PMI missed consensus at 58.9 for the month of July.

The broader picture remains bearish for the greenback nonetheless, as uncertainty around the US political scenario stays far from abated and markets are increasingly sceptics on the ability of the Federal Reserve to deliver a third rate hike at some point in Q4.

In the meantime, the weak tone in USD is reflected on the speculative community, which has turned net short for the first time since early June 2014 in the week to July 25 and according to the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.03% at 93.23 and a breakout of 93.81 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.74 (21-day sma). On the downside, the immediate support emerges at 93.00 (2017 low Jul.27) seconded by 92.52 (low Aug.24 2015) and finally 91.88 (2016 low May 3).