US Dollar weaker, tests lows in sub-97.00 area

The greenback, tracked by the US Dollar Index, is trading on the defensive during the second half of the week, coming back to test the 97.00 support.

US Dollar lower ahead of ECB, data

The index is posting losses after two consecutive sessions with gains, including yesterday’s fresh 4-month highs in the vicinity of 97.40. The rally in USD seems to be taking a breather today, allowing a pick up in the sentiment towards the risk-associated assets.

Ahead in the session, the ECB meeting will be the salient point today seconded by the releases in the US calendar: Initial Claims, Existing Home Sales and the Philly Fed Manufacturing index.

US Dollar relevant levels

The index is losing 0.31% at 96.90 and a breakdown of 96.59 (200-day sma) would open the door to 95.38 (low Jul.5) and then 95.23 (55-day sma). On the other hand, the next hurdle aligns at 97.37 (high Jul.20) followed by 98.58 (high Mar.1) and finally 99.95 (high Jan.21).