US Dollar drops further, eyes on 94.50

The US Dollar Index, which tracks the buck vs. its main rivals, is intensifying its downside today, shedding further ground to the mid-94.00s.

US Dollar keeps 2-week lows

The index has accelerated its downside today after the ECB left its monetary stance unchanged at today’s meeting.

USD met extra selling pressure despite the ECB’s Council has revised lower its inflation projections for the upcoming years while leaving largely unchanged its growth prospects for the region.

Adding to the selling bias, DXY has broken below the key support trendline off 2016 lows seen in early May, today at 94.70.

On the US data front, Initial Claims has beaten expectations at 259K WoW, taking the 4-Week Average to 261,25K from 263.00K.

Further data will see the EIA’s weekly report on crude oil inventories later in the NA session.

US Dollar relevant levels

The index is retreating 0.44% at 94.53 facing the immediate support at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and the 91.88 (2016 low May 3). On the upside, a breakout of the 100-day sma at 95.19 would open the door for a test of 95.41 (61.8% Fibo of the July-August drop) and finally 96.20 (200-day sma).