US Dollar tumbles further, threatening 95.00

The US Dollar Index, which gauges the buck vs. its main rivals, is coming under heavy downside pressure and is looking to challenge the key support at 95.00.

US Dollar tumbles on USD/JPY, sentiment

The index has now fully faded July’s advance from the mid-95.00s to last week’s 4-month tops around 97.60, all in response to a dovish tone at the FOMC meting on Wednesday, disappointing figures from US Q2 GDP (Friday) and increasing JPY-buying in response to growing scepticism on the stimulus package delivered by the Japanese Government.

Today’s mixed results did not help the buck either, with June’s PCE matching estimates, Personal Income rising less than expected and Personal Spending expanding above consensus.

US Dollar relevant levels

The index is retreating 0.55% at 95.19 facing the immediate support at 95.10 (100-day sma) followed by 94.78 (61.8% Fibo of 93.03-97.62) and finally 94.01 (78.6% Fibo of 93.03-97.62). On the other hand, a breakout of 96.64 (200-day sma) would aim for 97.62 (high Jul.25) and finally 98.58 (high Mar.1).