DXY extends slide but still holds above multi-year lows

• Greenback continues to move with a bearish bias, erasing yesterday’s gains. 
• DXY finds resistance near 91.00, drops back under 90.60. 

The US Dollar Index (Spot) continues to move with a bearish bias on Thursday but so far it has been able to hold above weekly lows. The greenback is falling in the market, earing yesterday’s American session gains. 

It remains under pressure, unable to make a sustainable recovery. For now, it holds above weekly lows as the trend points to the downside. During the last hour it managed to move modestly off session lows amid a retreat in equity prices in Wall Street. 

US economic data released earlier today had no impact. The sharp decline in housing starts and the slowdown in the Philly Fed was partially offset by the decline in initial jobless claims to 220K, the lowest reading since 1973. 

On Asian hours DXY peaked at 90.99 and then reversed its trend. Recently bottomed at 90.44. At the moment, it stands at 90.57, down 0.45%. At the same time, the Dow Jones is falling 0.33%, retreating from record highs. Surging US bond yields helped the greenback limit the decline. The 10-year yield holds above 2.60%, at the highest since March. 

Dollar Index Technical Levels

To the upside, immediate resistance might be seen near the 91.00 area followed by 91.20, 91.55 and the strong barrier at 91.75 (Jan 2, 4 & 5 low). On the downside, support levels could be located at 90.40, 90.20 and 90.00 (psychological).