US Dollar drops to lows near 101.30

The greenback, in terms of the US Dollar Index (DXY), has resumed its correction lower, testing daily lows in the 101.40/30 band.

US Dollar upside capped above 102.00

The index is losing ground for the second straight session so far after being rejected from 13-year tops above the 102.00 mark on Wednesday.

Market participants continue to cash up part of the recent and strong gains in the buck, although USD remains supported around the weekly low in the 100.70 region.

A very light week in terms of data releases is seeing the greenback keeping the constructive tone, always propped up by the potential move from the Federal Reserve by year end and solid results from the US docket as of late.

Later in the NA session, US Trade Balance figures during October are due followed by Markits flash Services PMI for the current month.

US Dollar relevant levels

The index is down 0.31% at 101.45 and a breakdown of 100.71 (low Nov.22) would open the door to 99.38 (low Nov.14) and finally 99.50 (20-day sma). On the other hand, the next hurdle lines up at 102.19 (monthly high Apr.2003) ahead of 102.68 (monthly high March 2003).

To learn more about this topic, check our video analysis: