US Dollar drops further near 98.40 post-data

The daily correction in the greenback remains well and sound on Wednesday, now sending the US Dollar Index to test lows near 98.40.

US Dollar weaker post-data

The index failed to gather further traction after mixed results from the US docket showed Markit’s Services PMI coming in above estimates for the month of October, while New Home Sales failed to meet expectations during September.

Previously, US goods trade deficit shrunk more than forecasted to $56 billion during September, bettering at the same time August’s $58 billion deficit.

In the meantime, USD keeps the bearish note for the second straight session so far today following a profit taking sentiment after hitting fresh 9-month tops just beyond the 99.00 handle on Tuesday.

However, deeper pullbacks in DXY seem unlikely at least in the near term, as growing expectations on a rate hike by the Fed in December and positioning keep supporting the case for a strong buck.

US Dollar relevant levels

The index is losing 0.14% at 98.55 facing the immediate support at 97.47 (low Oct.12) followed by 97.35 (20-day sma) and finally 95.86 (200-day sma). On the other hand, a break above 99.09 (high Oct.25) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3).