US Dollar drops to lows near 95.60

The US Dollar Index, which tracks the buck vs. its main rivals, is extending its weeky pullback to daily lows near 95.60.

US Dollar Index weaker ahead of US ISM

The index is losing ground for the second straight session for the time being, intensifying the leg lower after being rejected twice in the 96.30 area during last week.

USD has been losing momentum since yesterday, eroding part of last week’s gains despite US yields and expectations of a Fed’s rate hike in the next months remain as the exclusive drivers supporting the dollar, or at least limiting the downside.

Ahead in the session, USD will take centre stage in light of the US ISM Non-manufacturing, with prior surveys expecting the indicator to have improved a tad to 55.7 during the month of August.

US Dollar relevant levels

The index is losing 0.28% at 95.58 with the next support at 95.17 (low Sep.2) followed by 94.81 (78.6% Fibo of the July-August drop) and then 94.64 (support line off 2016 low). On the other hand, a breakout of 96.26 (200-day sma) would open the door to 96.50 (high Aug.5) and finally 96.86 (high Jun.27).