US Dollar Index slides to test 3-month lows

• US Dollar accelerates slide despite US data.
• Dow Jones hits 25,000 as gold rises toward $1320.

The US Dollar is falling across the board on Thursday trading at multi-month lows against many currencies. The greenback resumed the decline after a brief pause yesterday. Now even a better-than-expected ADP report stopped the slide. At the same time, the Dow Jones reached 25,000 for the first time ever while gold rose toward $1,320/oz.

DXY near critical level

The US Dollar Index, which measures greenback's performance against a basket of major currencies, erased yesterday’s gains and it was testing the 91.75/80 area that is a key support.

Economic data released today included the ADP report that showed an increase of 250K in private payrolls in December, the highest since March and the Markit Service PMI came in at 53.7. Both reports were above expectations. They offered support to the US Dollar only for a few minutes. Regarding data, attention now turns to NFP report that will be released on Friday.

The DXY rose to 92.00 after the ADP report but failed to climb above. Recently it printed a fresh daily low at 91.80. It was hovering around 91.85/90, under pressure, still defending the critical support.

Levels to watch

To the downside, the key support is the 91.75/80 zone, below that the next target could be seen at 91.45 followed by 91.00/05 (2017 lows). On the upside, immediate resistance might lie at 92.00 followed by 92.25/30 (Jan 3 & 4 high) and 92.50.