US Dollar tumbles below mid-94s on news of gradual implementation of tax cuts

• Bloomberg report suggests US House consider distributing corporate tax cuts over five years.
• DXY erases bullish opening gap and drops to session lows below mid-94s.
• 10-year T-bond yield eases to 2.379%, down 2% on the day.

The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, came under a modest selling pressure during the second half of the NA session and refreshed its daily low at 94.38 before retracing a small portion of its losses. At the moment, the index is at 94.45, losing 0.3% on the day.

According to a recent report by Bloomberg, the US House of Representatives was discussing implementing the Trump administration's proposed corporate tax cuts in a gradual manner that would add up to a total of 20% reduction by 2022. Major equity indexes, which were already under pressure amid fresh developments over the Russia probe, pushed lower on Bloomberg's report while the negative market sentiment weighed on the T-bond yields as well.

• Papadopoulos, former Trump foreign policy advise, pleaded guilty in Mueller probe - BBG

On Tuesday, the economic docket in the U.S. won't be offering any significant data that could impact the price action. Meanwhile, Fed's Powell, who is not seen as hawkish as Yellen, seems to be the frontrunner to become the next Fed-chair. Ahead of Thursday's announcement, the greenback could have a difficult time preserving its bullish momentum. 

• WH Official: Trump expected to announce his choice for Fed chair on Thursday - Reuters

Technical outlook

The index could face the first technical resistance at 95.00/95.05 (psychological level/daily high) ahead of 95.60 (Jul. 14 high) and 96.25 (Jul. 5 high). On the downside, supports could be seen at 93.85 (100-DMA), 93.35 (Oct. 26 low) and 92.85 (50-DMA).