US Dollar stays close to lows near 98.90

The US Dollar Index – which tracks the buck vs. its main competitors – stays depressed at the beginning of the week, currently hovering over the key support zone near 99.00 the figure.

US Dollar offered post-elections

The sentiment around the index has deteriorated further on Monday following yesterday’s win by centrist candidate Emmanuel Macron at the French presidential elections, paving the way for a wave of USD-sellers as risk-on sentiment irrupted in the global markets.

In the US data space, the Chicago Fed National Activity Index dropped to 0.08 for the month of March vs. February’s 0.27.

The persistent offered bias in USD has prompted the index to face a critical area just below 99.00 the figure, where are located the 200-day sma and the support line off 2016 lows seen in early May, all reinforced by 2017 lows near 98.70 seen in late March.

Adding to the grim scenario around the buck, USD speculative net longs have retreated to 2-week lows during the week ended on April 18 according to the latest CFTC report.

US Dollar relevant levels

The index is losing 0.72% at 98.94 facing the next support at 98.85 (low Apr.24) followed by 98.78 (11-month support line) and finally 98.67 (2017 low Mar.27). On the flip side, a break above 99.51 (23.6% Fibo of the March drop) would opem the door to (100.04 (38.2% Fibo of the March drop) and then 100.12 (20-day sma).