US Dollar remains weak near 88.20, multi-year lows

• DXY dropped to the lowest level since Dec.2014.
• The 88.00 handle could come under pressure near term.
• US housing data, U-Mich next of relevance.

The US Dollar Index (DXI), which measures the greenback vs. a basket of its main rival currencies, is extending the sell off at the end of the week and is opening the door for further downside towards the 88.00 mark.

US Dollar focused on data, yields

The index is posting its fifth consecutive session with losses and is trading in levels last seen in December 2014 around 88.20, all against the backdrop a firm sentiment surrounding the risk-associated universe.

In the meantime, USD seems to have decoupled from the performance of yields in the US 10-year note, which are trading around the 2.90% area and returning from the 2.95% region, or fresh multi-year peaks seen earlier in the week.

Looking ahead, US housing starts and building permits are due along with the consumer sentiment gauge by the Reuters/Michigan index.

US Dollar relevant levels

As of writing the index is losing 0.29% at 88.31 with the initial support at 88.26 (2018 low Feb.16) seconded by 88.13 (200-month sma) and finally 86.85 (support line off 72.70). On the upside, a break above 89.57 (21-day sma) would aim for 89.61 (10-day sma) and then 90.57 (high Feb.8).