Dollar Index - On the back foot, nears weekly 200-MA support

• Dollar index trades below 50-day MA.
• Nears weekly 200-MA support.
• Investors monitor tax bill progress.

The greenback fell below 50-day MA yesterday, despite the rise in the 10-year treasury yield to 2.4 percent.

As of writing, the dollar index (DXY) is trading on the back foot and is just short of the weekly 200-MA support of 93.61 levels.

Focus on US tax reform

The House of Representatives is expected vote first on the tax bill at around 1:30 PM (1830 GMT) today. The Senate vote is expected to follow either later on Tuesday or on Wednesday.

Still, the 10-year yield is having a tough time moving above 2.4 percent. Also, the dollar finds not takers. It indicates the investors could be questioning the efficacy of the tax reform, i.e. will it have the desired impact on the economy.

Further, the US housing data due later today could influence the USD as well.

Dollar Index Technical Levels

A break below 93.61 (weekly 200-MA) would open doors to 93.35 (100-day MA) and 93.28 (Dec. 14 low). On the higher side, breach of resistance at 93.82 (50-day MA) could yield 94.02 (Dec. 15 high) and 94.22 (Dec. 12 high).