US Dollar losing the grip below 99.00

The greenback, tracked by the US Dollar Index, remains depressed at the beginning of the week and is testing the key support around the 99.00 handle.

US Dollar weaker post-French elections

The sharp risk-on theme in the global markets following pro-EU candidate Emmanuel Macron’s win at the French presidential elections on Sunday keeps weighing on the buck, dragging the index to fresh lows in the 98.90/80 band.

USD faces a critical area just below 99.00 the figure, where are located the 200-day sma and the support line off 2016 lows seen in early May, all reinforced by 2017 lows near 98.70 seen in late March.

On the positioning front, USD net longs have retreated to 2-week lows during the week ended on April 18 according to the latest CFTC report.

In the US data space, the Chicago National Activity Index is expected along with the speech by Minneapolis Fed N.Kashkari (voter, dovish).

US Dollar relevant levels

The index is losing 0.60% at 99.06 facing the next support at 98.85 (low Apr.24) followed by 98.78 (11-month support line) and finally 98.67 (2017 low Mar.27). On the flip side, a break above 99.51 (23.6% Fibo of the March drop) would opem the door to (100.04 (38.2% Fibo of the March drop) and then 100.12 (20-day sma).