US Dollar sinks below 92.00, Draghi on sight

The US Dollar Index (DXY), which tracks the buck vs. its main rivals, is extending the weekly leg lower below the critical support at 92.00 the figure.

US Dollar now looks to Draghi

DXY is intensifying the downside today, down from last week’s peaks in the 93.50 region and opening the door for a probable test of 2017 lows in the boundaries of 91.60.

USD is still seen under scrutiny in light of the upcoming press conference by ECB’s M.Draghi following the decision of the central bank to leave its monetary conditions unchanged earlier in the session.

Draghi’s tone is expected to be tilted to the dovish side in response to the recent and strong up move of the European currency, although he could also emphasize the solid pace of the recovery in the bloc and the central bank’s prospects on inflation.

US Dollar relevant levels

As of writing the index is retreating 0.42% at 91.82 and a break below 91.62 (2017 low Aug.29) would target 91.51 (low Jan.15 2015) en route to 87.63 (low Dec.16 2014). On the upside, the next hurdle is located at 92.48 (10-day sma) seconded by 92.96 (21-day sma) and finally 93.35 (high Aug.31).