Reality-check for the US Dollar, back to sub-90.00 levels

• DXY quickly lost momentum above the 90.00 handle.
• US 10-year yields testing lows in the 2.91% mark.
• Gains in DXY faltered beyond 90.20, or multi-day peaks.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, is now facing a wave of selling pressure around the 89.80 region.

US Dollar upside limited near 90.20

The index lost upside momentum today after USD-bulls failed to sustain the advance further north of the psychological 90.00 handle.

It is worth mentioning that DXY clinched fresh tops above 90.00 the figure earlier in the session following the hawkish message from the FOMC minutes on Wednesday. The up move has been in tandem with yields of the key US 10-year reference testing new multi-year tops around 2.96%.

However, the bullish attempt run out of legs, prompting sellers to quickly step in and force the greenback to slip back to the 89.85/80 band where it is now looking to rebound.

In the US data space, initial claims came in at 222K WoW, beating estimates and taking the 4-week average to 226.0K from 228.25K. Later in day, New York Fed and permanent voter W.Dudley (centrist), Dallas Fed R.Kaplan (non voter, hawkish) and Atlanta Fed R.Bostic (voter, centrist) are all due to speak.

US Dollar relevant levels

As of writing the index is down 0.34% at 89.80 facing the immediate support at 88.26 (2018 low Feb.16) seconded by 88.14 (200-month sma) and finally 86.89 (support line off 72.70). On the other hand, a break above 90.57 (high Feb.8) would aim for 91.00 (high Jan.18) and then 91.22 (55-day sma).