DXY drops to fresh 3-week lows

• US Dollar extends losses after US data. 
• DXY having worst day in weeks. 

The greenback is falling on Wednesday across the board. It extended the slide against its European rivals during the American session while it consolidated previous losses. Price actions remain calm amid low volume. 

The bearish trend in the US dollar continued after the release of US economic data. Pending home sales rose 0.2% in November against expectations of a 0.5% slide. The positive report was offset by the Conference Board consumer confidence index that fell to 122.1 against the 128 reading, expected by analysts. 

The US Dollar Index was trading at 92.97, the lowest since December 1. It is having the worst performance since December 13. 

The DXY broke below the key short-term support around 93.20 that capped the downside last week. The outlook continues to favor the downside. A rise back above 93.40 would remove the negative tone and could signal an extension to the upside. 

DXY Technical levels 

Below daily lows, support could be seen at 92.60 (Dec low), 92.50 (Nov low) and 92.10. On the upside, resistance might lie at 93.15/20, 93.30 (Dec 27 high) and 93.40 (Dec 26 high).