US Dollar extends the bounce off 94.00

The greenback – measured by the US Dollar Index - seems to have recovered the smile on Friday, currently rebounding to the vicinity of 94.40.

US Dollar still in 2-month lows

The index is closing its second consecutive week with losses following an extension of the bearish tone around the buck, which has recently been accelerated after the recent FOMC minutes have confirmed the Fed remains in ‘pause’ mode regarding the prospects of a rate hike.

However, the dollar’s decline seems to have found quite decent support in the 94.00 neighbourhood, reinforced at the same time by the support trend line off 2016 lows at 91.88 posted on May 3.

Absent releases in the US docket today, USD’s price action will surely remain at the mercy of the broader risk appetite trends.

US Dollar relevant levels

The index is gaining 0.23% at 94.38 and a surpass of 94.78 (61.8% Fibo of July-August drop) would open the door to 95.11 (100-day sma) and finally 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3).