US Dollar Index drops to test last week lows

• US under pressure against European currencies and the yen. 
• DXY about to test key short-term support. 

The US dollar is falling in the market as US yields rise and while equity prices hit new record highs. The Dow Jones was up 0.66% at 24,815 points while the S&P 500 was up 0.58%. 

The Dollar Index just dropped to 92.88, the lowest since last Thursday and it was hovering slightly below 93.00. The short-term bias points to the downside. The DXY is near last week lows and a break lower could reinforce the negative bias. 

The greenback was under pressure at the beginning of the week with investors looking at the US Congress, expecting announcements regarding the tax bill that has become a key driver. US bond yields were rising marginally while the main drivers appear to be the slide in USD/JPY and the rally in gold prices. 

Technical levels 

To the upside, resistance levels might now lie at 93.50, 94.00 (psychological / trendline) and 94.25 (Nov 2 & 3 low). On the downside, the index is near last week lows at 92.80, below that area the next support levels could be seen at 92.50/55 (Nov 24 low) and 92.35/40 (Nov lows).