US Dollar: another sharp decline

Greenback resumed the decline that started last week. The US dollar moved with a bearish bias all day and extended losses during the American session.

The US Dollar index, which gauges the US dollar against its main competitors, is losing 0.60% on Tuesday and is down almost 2.50% from the level it had a week ago.

Today’s economic data, that showed an increase in personal spending of 0.4% and in personal income 0.2%, gave momentarily support to the DXY that afterward broke below 95.30 accelerating the decline.

Levels to watch

The index bottomed at 94.89, the lowest levels since June 24, the day of the Brexit referendum results.

From a technical perspective the consolidation below 95.20 and under 95.00 could open the doors to more losses. Technical indicators show oversold readings but momentums remain strongly bearish. A recovery above 95.70/80 would remove some short-term downside pressure.