Dollar index clocks 4-day low

Dollar index dropped to a four-day low of 100.28 in Asia as the markets began pricing-in the risks associated with Trump Presidency.

The index had dropped to a low of 100.26 last week before recovering to a high of 101.73 (Thursday’s high). However, the index failed to take out the 100-DMA and fell to a low of 100.72 on Friday after Trump talked about his protectionist agenda during the inaugural speech.

The US data docket is light; hence the dollar is likely to move in tandem with the US treasury yields.

Dollar index Technical Levels

A break below 100.00 (psychological level) would open doors to 99.43 (Dec 8 low), under which a major support is seen at 99.30 (100-DMA). On the other hand, a breach of resistance at 100.72 (Friday’s low) could yield a re-test of 101.00 levels (zero figure). A violation there would expose 100.68 (50-DMA).