US Dollar on the defensive below 95.00
- US 10-year yields remain soggy around 2.31%.
- Recent tops beyond 95.00 keep capping the upside.
- US tax reform headlines to drive sentiment near term.
DXY is trading in a soft fashion on Wednesday, with the upside still limited by recent peaks above 95.00 the figure.
US Dollar looks to US politics for direction
The index has eased some ground following yesterday’s test of tops beyond the key 95.00 barrier amidst soggy performance of US yields, rising EUR/USD and concerns over the US tax reform.
In fact, renewed uncertainty surrounding the US tax reform proposed by the Trump’s administration and fears over probable delays has been weighing on the buck since early Asian hours and keeping buyers at bay.
Additionally, yields of the key US 10-year benchmark keep the choppy note so far today around the 2.31% area and without a clear direction.
On the US data front, the official report on US crude oil supplies by the DoE is next on tap following yesterday’s draw in stockpiles reported by the API.
US Dollar relevant levels
As of writing the index is losing 0.08% at 94.85 and a breakdown of 94.75 (10-day sma) would open the door to 94.42 (low Nov.2) and finally 94.03 (23.6% Fibo of the 2017 drop). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.66 (200-day sma).