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Dollar index breaks below 99.50 support zone

The move follows growing bets the Fed will hold rates unchanged in September after weaker labor data and easing inflation in July.

Reported · Written up by our desk · Major Pairs

The dollar index fell to the lowest level in about two months on Monday after it eventually broke below a key 99.50 support zone, which had been defending against repeated attacks, according to Action Forex.

ActionForex.com said the dollar has been lower for a second straight day, with the slide driven by expectations that the US central bank will keep interest rates unchanged in September. Those bets have intensified after indicators pointed to further labor market weakening and inflation easing in July.

The index also violated the floor of the broader 99.25 to 99.95 range, extending into a third week, which the outlet said supports bearish continuation from the prior decline that began near 101.48.

ActionForex.com added that broken levels, including the Ichimoku cloud base and trendline support, are now seen as potential resistance, with near term focus on a move toward 99.00 and key guards at 98.67 and 98.41.

Latest closeDollar index 99.64 ▼0.3%

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