US Dollar fails to extend correction above 99 handle

The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, is having a difficult time making a meaningful correction during the American session. After rising to 99.12, the index held above 99 for the last couple of hours before coming under pressure once again. As of writing, the index was down 0.7%, at 98.90.

Although some details regarding Trump's tax reform crossed the wires recently, the market's focus remains on the euro and the developments surrounding the French presidential election. According to a report published by The Wall Street Journal, Trump is willing to decrease the corporate tax rate to 15%.

In the meantime, French far-right presidential candidate Marine Le Pen announced that she stepped down as head of National Front Party. This move by Le Pen is assessed as an attempt to increase the number of her potential voters. However, this recent development hasn't put any pressure on the Euro yet. 

Technical outlook

With a convincing break above 99 (psychological level), the index could aim for 99.75 (Mar. 23 low) ahead of 100 (psychological level). To the downside, 98.65 (Mar. 27 low) could be the first technical support followed by 98.30 (Nov. 10 low) and 98 (psychological level).