US Dollar Index passed the 94.20 mark and settled there earlier in the session. The ongoing volatility and uncertainty around the US election should leave the near-term outlook on the greenback unclear. While the 94.20 area emerges as quite a decent resistance level, this could be an extended retreat from a monthly high, as price failed to break above the confluent resistance and the 94.00 mark.
The 61.8% retracement level (acts as immediate support), which has been formed from September 21st to November 2nd, and the bullish move are in line with the topside break of Descending Channel. The 93.00 area is expected to hold an occasional downside test if support is firm
Nevertheless, further declines appear a more likely scenario. A daily close below the psychological support at 93.00 would probably trigger a push to test the yearly low set on September 1 (91.75).
What to look for on USD?
The continuation the US dollar momentum depends on the election results in the very near-term. Later in the week, the greenback is expected to remain under pressure from the key data releases and the FOMC meeting this Thursday.
