Dollar Index remains in the 90.00/91.00 range despite US government shutdown

• US yields move off daily highs. 
• Dollar Index keeps bearish bias, remains above 90.00. 
• US government shutdown continues. 

The US dollar erased gains and turned negative in the market after a positive weekly opening. The greenback failed to hold in positive territory as the US government shutdown continues and amid a recovery in US bonds. Later today a vote at the Senate could take place but the result is not clear. Most analysts expect no major economic, neither markets consequences from the shutdown and see an agreement in the short-term. 

The dollar index (DXY) peaked earlier today at 90.71 and retreated. Recently bottomed at 90.36. It was trading at 90.45, down 0.1% for the day. 

DXY continues to move in ranges, near 3-year lows. The main trend still points to the downside but in the short-term is moving in consolidation mode. The upside remains capped by the 91.00. While on the downside it continues to find support well above 90.00. A break of the 90.00 area could signal more losses ahead. 

Dollar Index Technical Levels

To the upside, immediate resistance might be seen at 90.80 (Jan 16 & 18 high), followed by the 91.00 area and 91.20. On the downside, support levels could be located at 90.35 (Jan 22 low), 90.15 (Jan 19 low) and 90.00 (psychological).