US Dollar Index extends slide, hits fresh 1-year lows near 92.00

The greenback is falling across the board on Monday as it continues with the move that started on Friday after Janet Yellen speech in Jackson Hole. 

DXY eyes 92.00

The Dollar Index broke below 92.25 during the American session and fell to 92.07, reaching the lowest intraday level since May 2016. It remains near the lows, under pressure, headed toward the weakest close since January 2015. 

The index has been falling every month since March and with the decline of the last two trading days is now also in negative territory for August. 

The “bored” speech from Yellen triggered the current slide of the dollar. Fed Chair did not offer clues about the future of monetary policy. Also, the latest actions from President Trump, including new threats of leaving NAFTA, created some concerns among investors, reducing its demand for the greenback and shares. 

Greg Gibbs, Director of Amplifying Global FX Capital, considers that the situation could change in the next months: “If Congress can make progress the spending bill/debt ceiling issues, and Trump can stay on a tax reform message, there is scope for a significant tactical recovery in the USD before year-end.”

US: Dollar may bite back, especially if tax reform comes through - AmpGFX

US Dollar relevant levels

The DXY is at 92.10, the immediate support is seen at 92.00 (psychological), 91.90 (May 3 2016 low) and 91.50 (Jan 2015 low). On the upside, resistance now could be seen at 92.25 (Asian session low), 92.45 (daily high) and 92.75 (Aug 11 low).