US dollar bulls looking for reversion of the drop

• US dollar down in the dumps following Friday's data. 
• US Consumer Sentiment dropped sharply in early August to its lowest level in a decade. 

At the time of writing, the US dollar is where we left off from Friday, trading within a 92.493 and 92.553 range in consolidation following a drop in Friday's plunging consumer sentiment data. 

The fall was one of the six largest drops in the past 50 years of the survey, robbing some of the glory that the dollar picked up following the producer price data the prior day that bolstered the case for action from the Federal Reserve.

The DXY, which measures the greenback against a basket of six rivals, was 0.4% lower at 92.523, its lowest since Aug 6. 

Meanwhile, the markets are looking ahead this week to the US Retail Sales and the Federal Reserve's minutes.

''As for the minutes, the focus will be on expressed views on QE tapering, how, as well as when,'' analysts at TD Securities, said. 

''In his press conference, the chairman indicated that most officials favoured tapering of Treasuries and MBS together, rather than starting with just MBS. On when, he suggested that a decision on tapering would require discussions at coming "meetings" (plural), consistent with November at the earliest.''

DXY technical analysis

In the prior analysis, US dollar teases reversal traders, Golden Cross underpins, it was anticipated that there would be some let-up in the greenback's strength ahead of the Jackson Hole: 

However, the deterioration has been immediate following Friday's data:

There is now a bias to the upside while above 92.351.  

With US 10-year yields meeting daily support, a pick up from there would be expected to support the greenback.